Real estate agents and lenders highly recommend that you, as a home buyer, get pre-approved with a lender before selecting a home to purchase. This way, you will have the best information about the right price range for your pocketbook. Most importantly, your Seller will have the confidence to accept your offer and it will give you the upper-hand if there are multiple offers.
9 GREAT REASONS TO GET PRE-APPROVED
Pre-approval determines which loan program best fits your needs.
You won’t waste time considering homes you cannot afford.
You are ready to write and present an offer on the home you really want when you find it.
Your buyer specialist can give the seller a pre-approval letter for you.
In today’s market, with multiple offers on properties, pre-approval puts you in a much better negotiating position.
You will know the amount needed for down payment and closing costs.
If you are a first-time buyer, you may be able to qualify for a special first-time buyer program that may allow you to afford more home for your money.
If you feel you would like and can afford a higher mortgage payment, other options may be available.
Peace of mind.
When it comes to getting pre-approved for your loan, your lender will ask you for the following items. To expedite the process, have the following information ready when you apply:
Borrower Information:
Full name
Marital status
Age
Address
Previous address (if less than 2 years at current address)
Landlord (past 2 years)
Phone number
Place of employment (past 24 months)
Length of employment
Previous employer (if less than 2 years at current employer)
Social Security number
Name and age of dependents
Income:
Base pay (pay stubs for 1 month)
Overtime
Bonuses
Real estate income
Interest income
Alimony/child support (Copy of Divorce Decree) (Need not be disclosed, if you choose.)
Other regular income (Social Security, retirement accounts, etc.)
Last two years’ W-2s and federal tax returns
Assets:
Names and addresses for these accounts will be required along with account numbers
Cash (savings, checking, money market)
Securities (stock, mutual funds)
Value of real estate
Proceeds from sale of current home
Cash value of life insurance
Automobiles
Personal property
Liabilities:
For the following items you will need the total due, monthly payments, and amount of payments remaining. Names, addresses, and account numbers will also be required.
Automobile loan
Bank loan
Real estate mortgage
Personal loan
Notes payable
Credit cards
Alimony/child support
Outstanding judgments
Miscellaneous debt
Bankruptcy and discharge of bankruptcy
