Now that we have our credit in order, and you are comfortable with how much home you can afford, lets get you pre-approved for a mortgage loan.
You can make an apointment with a local lender, or go online. When you apply for a mortgage, you will need the following:
- Two most recent pay stubs
- W-2s for the last 2 years
- Federal tax returns for the last two years
- Last two months of bank statements
- Long term debt information (credit cards, child support, auto loans, installment debt, etc.).
After you have compiled this information, you need to know the differences between getting pre-qualified and pre-approved for a mortgage loan. Here’s the difference: Pre-approval uses basic information, as well as electronic credit reporting to determine weather a lender will loan you money. If you are pre-approved for a mortgage loan, the lender has given you a commitment to support your new home. Pre-qualification is not a mortgage approval, but simply an estimate of what you can afford. The lender also collects the basic information to calculate an estimated mortgage amount. However, this is not a commitment, and therefore you have not received an actual guarantee of funds.
Those who are pre-approved for a mortgage loan are more attractive potential buyers to home sellers and have a better chance of getting the property when an offer is made. You do have the right to shop around when deciding on a mortgage loan. There are many great programs available in today’s lending market. Take some time and get yourself educated on some of the different programs. Now is the time to take advantage of these low interest rates, and seller’s are negotiable in our market today.
Let’s go shopping!