Step 1 – Hire Me
I’m not trying to be funny but if you don’t know a Realtor personally then you should talk to 2-3 real estate agents. Make sure that they are Realtors because a Realtor subscribes to the National Association of Realtors Code of Ethics. You should try to develop a working relationship and a GREAT line of communication with the agent you choose to work with if you are going to have a fun and successful home purchase.
Step 2 – Pre-Approval vs Prequalified
Pre-Approval is a much more in-depth process than getting prequalified. When you go for a pre-approval you will need to bring the lender your financial documents. We’ll get into this in a moment. Once you have completed your due diligence and are preapproved for a mortgage you are now ready to look at and submit an offer on the home of your choosing. A pre-approved buyer is preferred over a pre-qualified buyer when there are multiple offers on the table. Again the pre-approved buyer has done their due diligence.
- Credit Report – The lender has run the buyer’s credit report and has a very good idea as to the buyer’s credit worthiness. If there are any blemishes (liens, judgments, etc) on the credit report, they will have to be taken care of prior to the lender granting you a mortgage. So it is of utmost importance to know what your credit score is and if there are any blemishes on your report.
- Bank Accounts – You’ll need to bring in 2 months of your checking and savings accounts so the lender can verify your assets.
- Other Assets – These would include your 401K, retirement acct, stock, bonds accounts and any other accounts you may have.
- Earning Verification – The last 2 pay stubs from your employer. The lender wants to make sure you are employed and can repay your mortgage. Contact information at your work to verify that you are currently employed and make the same hourly wage.
- Credit Cards – List of all your credit cards and current balances. This will show up on the credit report. Remember that your credit report can have errors on it and its best to take care of these mistakes early in the process of getting pre-approved for a loan.
- Income Tax Returns – The lender is going to want to make sure that your income has been stable for the last 2 years. That’s why they will want to see the last 2 years of your income returns or W2’s.
Every lender is different and they make ask for more or less documentation for your mortgage pre-approval.
If you have any question at all just call me a 616-485-8955. I’m here to help.