Get Pre Approved for a Mortgage FIRST !!!
A pre-approval is a like a commitment in writing from a lender that a borrower would qualify for a particular loan amount based on income and credit information.
Why you should get pre-approved?
There are many reasons why you should get pre-approved. The most important reason you should get pre-approved early in the process of purchasing a home is that you will get an accurate idea of how much you can afford. This will ensure that you only look at houses that are truly in your price range. A pre-approval letter is also essential in a competitive real estate market. If you make an offer on a house without a pre-approval, your offer will not be taken as seriously as an offer from another person with a pre-approval and you could lose out on purchasing the house of your dreams. Additionally most bank-owned homes will require a pre-approval letter from a lender before accepting an offer.
What is involved with getting pre-approved?
Documents you’ll need to provide to get a true pre-approval
• Your W2 from the past two years
• Your paystubs for the past three months
• Your tax returns from the past two years
• Your checking or savings bank statements for the past three months
• Your statements for all your other assets (stocks, bonds, etc. for the last two months
• The name and phone number of your landlord or your current mortgage documents
• Your divorcee decree, if applicable
• If you are self-employed: Your business tax returns for the past two years in addition to your year-to-date profit and loss statement and year-to-date balance sheet