Getting Pre-approved

Once you have an idea of the type and size home you want and the area you'd like to look in, you need to be pre-qualified by a lender.

By doing this before looking for a home you'll save yourself time, energy and frustration because pre-qualification can:

Determine How Much Home You Can Afford: Pre-qualification helps you avoid buying less home than you can afford or being disappointed if you don't qualify for as much as you had hoped.

Shows What Your Total Investment Will Be: You'll know approximately how much money you'll need for down payment and closing costs.

It Lets You Know What Monthly Payments Will Be: You'll have a close estimate of what your monthly principal, interest, taxes and insurance (PITI) will be.

Identifies the Loan Programs You Can Qualify For: With the wide variety of loan programs available, it is important to know which types you qualify for and which will best suit your needs.

Strengthens Your Offer: Sellers are more inclined to accept realistic offers when they know that you have taken the time to be interviewed by a lender and can probably qualify for the loan.

At this point, your lender can also help you determine alternatives and strategies that could help you buy the home of your dreams.

In order to be pre-approved, the lender will need to know the following:

1. Your employment history and income
2. Your monthly debts and obligations
3. The amount and source of cash available for downpayment and closing costs
4. Credit report
5. Last 2 years of bank statements (all pages)
6. Last 2 years of tax returns
7. Last 2 months of paystubs

When you are pre-approved by your lender, you'll receive a pre-approval letter to give to your real estate agent. In today's market, this is a prerequisite before we can set up a showing as Sellers want to know buyers are qualified to buy their home before allowing it to be shown.