Qualifying for a Mortgage in 2014 – Has anything really changed?

Back in the 1990’s qualifying for a mortgage is much like it is today – in 2014 and most likely how will continue to be in 2015 and beyond. The process is also much the same.

Mortgage Qualification Process

  • Call a mortgage loan officer – lender – bank
  • Go over what you want to do with your loan officer
  • Discuss your credit, income, money in the bank
  • Loan officer will want to get your credit
  • For a real mortgage pre qualification, you’ll need to provide your financial documents – pay stubs, bank statements, tax returns, W-2’s, retirement account statements (if you have any), bankruptcy paperwork (if you have any), divorce paperwork (if applicable) and other relevant financial documents
  • Loan officer will take a full loan application, compare to your financial documents and credit report
  • Loan officer will run your loan situation through some sort of automated program online – automated underwriting
  • Depending on your situation – like credit scores, how much money you make, money in the bank etc. you’ll either get approved, conditionally approved, or declined.
  • If you are buying a home then your loan officer will give you some sort of qualification letter to give to your real estate agent (each state is different for what the real estate agent needs to go along with any sales offer you make).

That in a nutshell is a simple version of the process – and it’s been like this for a very long time and it most likely won’t stop being this way for a long time into the future.

What you may be asking is “what has changed?” What has changed is what types of loan programs they have now as compared to before 2000, between 2000 and 2007 (the big mortgage/real estate crash), and what’s around now. The credit and income guidelines are a bit stricter now, but if you have had issues in the past – that doesn’t mean you can’t get a mortgage – you just need to know what to do to clean things up.