How To Get Prequalified For A Mortgage (Financial Colonoscopy)

When I first considered working with my real estate coach, I really didn't think that it would be all motivation and mindset—the dreamy “woo-woo” stuff we have been talking about for the past month or so. I signed up and paid the fee because I wanted to take action. I couldn’t have been more wrong.

Right out of the gate, I had 3 assignments.

First, I wrote out a vision for my life—a brain dump of every dream I could imagine. It wasn’t about having practical steps to achieve those dreams right away, it was about burning everything to the ground: thinking as big as possible, no matter how impossible it seemed.

Then I created a personal financial statement. This would come in handy for the action steps my coach assigned soon after.

And finally, the heaviest one: I wrote my own eulogy. That one was a monster energy drink for my motivation.

After turning in those assignments, I wondered, What’s next?
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​Can we get to the real estate already?

Turns out, the real work was just beginning.

My coach kept pushing me to take action, and soon I had more tasks on my plate. He sent me books to read—books that completely changed my outlook on money, business, and life.

Here’s a few of volumes on the list:

• ​Money Grows on Trees​

• ​Money Mastery​

• ​The No Quitters Guide to Real Estate Investing​

I dove in and devoured them. These books weren’t just tips and theories; they were frameworks that shifted my thinking. If you haven’t read them yet, go grab a copy of each.

Reading was just the start.
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What was the big goal? What was the reason I swiped my card in the first place?
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My mission was:​
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To buy my first rental property, and in so doing, learn a simple real estate investing strategy that I could use as a tool to make my dreams a reality.

The Plan

Together, my coach and I worked out the game plan.
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We weren’t just looking for any old property—it had to check a few key boxes:

1. Affordability: As I would soon find out, I couldn't afford to buy a 27 unit apartment complex. I would have to find a property that was under $130k.

2. Sweat Equity: We needed a property with room for improvement—a fixer-upper where I could put in just the right amount of sweat equity and add significant value.

3. Scope of Work: This ain't HGTV. Ya boi couldn't sign on the dotted line for a total gut job. i was after a deal that required as little renovation as possible.

4. Live-In Potential: I hadn’t moved out of my parents’ house yet, and my coach insisted I buy something I could live in. He wanted me to feel the responsibility of homeownership firsthand, and he was right. That experience was invaluable.

5. Rental Income: The property also had to have rental potential, whether that was renting out rooms or a full unit to help cover the mortgage.
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   And step one? Getting pre-qualified for a mortgage.

The Prequalification Process

Now, I had a little experience here—I was working as a licensed mortgage loan officer at the time. But applying for a mortgage as the borrower? That was an entirely new ballgame.

If you’ve never applied for a mortgage, here’s what you can expect:

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• Income Docs:

  • 2 Years W-2 Forms

  • 2-Years of Tax Returns

  • 30 days worth of Pay Stubs

  • Additional Income Documentation: You may need to provide proof of income from bonuses, commissions, alimony, child support, Social Security benefits, or military rental properties.

• Proof of Assets:

  • Gift Letters: If using gift funds for the down payment, include a letter stating the money is a gift and not a loan.

  • Bank Statements: Statements from checking and savings accounts for the past two months.

  • Investment Account Statements: Recent statements from retirement accounts, stocks, bonds, or other investments.

• Additionally, you will have to provide:

  • Employer Information: Names and addresses of employers for the past two years.

  • Self-Employment Documentation: If self-employed, provide business tax returns for the last two years and a year-to-date profit and loss statement.

  • Photo ID: A valid driver's license, state ID, or passport.

  • Social Security Number: Your Social Security card or Individual Taxpayer Identification Number (ITIN).

  • Residential history (often the past 2 years, every address you have Social Security number, recent financial documents (like bank statements and pay stubs), and your credit history.

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To put it bluntly, the lender will give you a financial colonoscopy if you are a new borrower.
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And still...
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Getting the green light from a lender isn't the finish line—it is just the starter pistol.
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Once I submitted the mortgage application, it was time to build my team.
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I can't wait to tell you more.

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Talk soon,

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-Jonathan