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How to buy loans

how to buy loans

3) Get Pre-Approved to gauge your Home Buying Power

By getting pre-approved by a lender, you’ll learn what the costs and down payment requirements are. To determine what you can qualify for, a lender would look at your 2 year employment history, credit (FICO), income, and assets.

Keep in mind:

  • A lender must look at most aspects of your financial history, at least in short term.  All funds need to be sourced and explained; any large deposits outside of normal payroll will be closely scrutinized.
  • Gifts from family are usual for first time homebuyers.  These, too need to be sourced and accompanied by a lender’s gift letter.
  • Always check with the lender that you are giving all documents needed for a comprehensive decision on your preapproval.
  • A list of documents needed

    would include 2 years of W-2s, 2 years of federal tax returns, 30 days’ worth of pay stubs, 2 months of asset statements.

  • More documents may be needed once the loan is underwritten.  A lender will require all pages of tax returns and bank statements.

There are many federal and private programs geared towards first-time home buyers with minimal down payment requirements, as well as expanded guidelines that enable those who may think they can’t afford a home to do just that.  To best figure out what your home buying capabilities are, contact a lending professional and discuss your financial situation.

Brendon Fray is a Senior Mortgage Banker with Darien Rowayton Bank of Darien Connecticut. Brendon has the ability to lend mortgages in most states and can be contacted at: 203-669-4148 or

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