Once you’ve decided that now really is the time for you to take the plunge into homeownership, your first step is to get pre-approved. This way you'll know what your monthly payments will likely be, which will help you determine your housing budget and how much home you can afford?
A pre-approval is critical to the homebuying process because it:
Tells you and your real estate agent what your budget is
Gives you an idea of what your down payment will be
Helps you identify budgeting goals to work toward
Getting a pre-approval means we will approve you for a certain loan amount, subject to certain conditions. It’s true that some factors, such as changes to your credit report or income prior to closing, could jeopardize the loan approval, so talk to me before you make any big changes or purchases.
To get you pre-approved, you’ll need to submit a number of documents, your income and finances will be reviewed and verified, and I’ll run a full credit check.
Documents needed for pre-approval include:
Driver’s license or government-issued ID
W-2 or 1099 statements for the last two years
The past two months’ statements for all bank accounts
The two most recent pay stubs or income verification from clients
The most recent statements from retirement accounts, such as IRAs and 401(k)s
Statements for any stocks or other investment accounts
