| One of the most important steps in the home buying | | | | want to initially see copies of: |
| process is getting Pre-Approved as early as possible. | | | | - W2's from the last 2 years |
| The Pre-Approval process involves you speaking with | | | | - Tax Returns from the last 2 years |
| a Mortgage Lender about your financial situation, what | | | | - Pay stubs from the last 30 days |
| you'd like to accomplish, and any concerns you have. | | | | - Bank & Brokerage Statements from the last 3 |
| Armed with that information, a Mortgage Lender can | | | | months |
| obtain an approval from a lender up to a specified loan | | | | Additional documentation will be required depending on |
| amount and provide you with monthly payment | | | | your specific situation and as the process progresses. |
| information and closing cost information. | | | | Your Mortgage Lender will go through a loan |
| There are many benefits to getting Pre-Approved. | | | | application with you, which covers questions related to |
| First, Realtors will spend more time assisting you with | | | | your current residence, employment status, marital |
| your home search if they are confident you'll be able | | | | status, etc. There will be a series of disclosures you'll |
| to obtain financing once you've located a home you're | | | | have to sign as well - some required by the State or |
| interested in purchasing. Second, Seller's will take your | | | | Federal Government informing you of your rights in the |
| offer more seriously since they know you will be | | | | process. |
| approved for a mortgage -- and they won't risk taking | | | | With the application and disclosures signed, the |
| their home off the market only to find out the deal is | | | | supporting documentation you provided, and an |
| going to fall through 30 days later. Finally, since you | | | | understanding of what you are hoping to accomplish, |
| know you've been approved and much of the | | | | the Mortgage Lender is ready to submit your "loan" |
| paperwork has already been processed, you're in for | | | | through what's called "Automated Underwriting". Within |
| a much less stressful experience. | | | | minutes, unless your situation requires an underwriter to |
| Why is it important to do this as early as possible? | | | | personally review your file, you will have an answer to |
| Many loan officers report that over 50% of the credit | | | | your loan application. |
| reports they see have inaccurate information listed. | | | | Now that you have an approval, your Mortgage |
| This inaccurate information could be the difference | | | | Lender will issue a Pre-Approval letter outlining the |
| between you getting a loan or not getting a loan - | | | | terms of your approval. Your Realtor will request a |
| getting a rate of 5% or getting a rate of 7.0%. The | | | | copy of this letter (typically before they begin showing |
| earlier these errors are found, the sooner they can be | | | | you homes) and will include a copy with any offeryou |
| corrected. | | | | make on a property. |
| So, what do you need for the Pre-Approval Process? | | | | Now it's time for the fun part - looking for homes! |
| Here a list of documents your Mortgage Lender will | | | | |