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Loan Pre-qualification
If you only want to determine the price range of the homes you should restrict your search to, you can ask the loan officer to prequalify your loan. To prequalify for a loan, we will use financial information you provide us to estimate the maximum mortgage payment you should be able to obtain. This process does not guarantee that your mortgage application will be approved, but does help you narrow your search to homes you can afford. To determine if you pre-qualify for a loan, we take the financial information that you provide us, compute certain ratios, and compare them to the guidelines for the various home mortgage programs that we offer.
There are two ratios that are fundamental in determining if you qualify for a mortgage program. The first ratio is the total monthly mortgage payments (loan payment, taxes, insurance, and mortgage insurance) divided by your gross monthly income (salary before taxes). For most loan programs, your mortgage payment should be no more than 28 to 33 percent of your gross monthly income, depending upon the loan program desired. The second primary ratio used in determining if you qualify for a loan program is the ratio of your total monthly debt payments (your new mortgage payment, credit cards, auto loans, etc.), divided by your gross monthly income. Your total debt payments should be no more than 36 to 41 percent of your gross monthly income depending upon the loan program you wish to finance your new home.
Loan Pre-approval
Getting your loan pre-approved is a more time consuming and formal process. Basically you must submit all of the paper work that is required as when you submit a formal loan application. This includes your credit history, employment history, and down payment funds. By getting your loan pre-approved you can save time after you have selected a home and it may improve your bargaining position with a potential seller if he knows your financing has already been approved. Another potential benefit is that while errors on your credit history are rare, they do occasionally occur. By discovering any errors that may have occurred in advance, you have time to get them corrected and avoid any potential embarrassment with the seller and realtor. If an error does occur it sometimes takes more than 30 days to get it corrected. The seller may not be willing to wait for you to get the problem resolved and may decide to sell the property to someone else who can complete the transaction more quickly.
The following is a list of items you will need to provide us to get your loan pre-approved.
- A completed residential mortgage loan application that list your income, assets, and liabilities.
- Verification of your employment history for the past two years such as a copy of your W-2's for the last two years.
- Verification of your current income such as a copy of your last pay stub.
- Verification of the source of funds for your down payment such as a copy of your bank statements.
- A copy of your credit history will be obtained from one of the national credit bureaus.
To speak with a Prequalified or Preapproved Loans representative,
contact Andrea Hays at (618) 382-4118 or
 customer-service@surffirst.com.
 How Much House Can You Afford Calculator
Please Note - The calculated amount is an approximate value and may differ from the bank's final calculation.
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