Get Pre-Approved by a Lender
There are several benefits to going the extra mile and getting a pre-approval letter. First of all, you will know exactly how much real estate you can afford. You also will know how much the monthly mortgage payment will be. If it’s not within your budget, then we can figure out what price of home we should be looking for.
When you find a property you want to buy, your offer will be in a better position than someone less prepared. Finally, being pre-approved is more efficient; it reduces the amount of time it will take your lender to fund your loan. Be prepared to provide comprehensive documentation, which the lender may independently verify, including but not limited to:
- Drivers’ license or alternate form of ID
- Social Security Card
- Either 2 years of W-2 forms from your employer or 2 years of tax returns if you are self-employed
- 2 most recent pay stubs
- 2 most recent months of bank statements
- Asset statements if downpayment or closing costs are coming from something other than checking/savings accounts
- Proof of other income sources (child support, alimony, retirement, social security, disability, etc.)
- If you’re not a US citizen, then copy of your green card or visa
- Copy of most recent mortgage statement (including current homeowner’s insurance policy & most recent real estate taxes) if you are applying for a home equity line of credit, REFI, or another mortgage for a second home or investment property.
