About Pre-Approval

Pre-Approval: The Buyer’s Advantage

It has always been a good idea, but lately it has become even more important.

Why should I be pre-approved for a mortgage loan?

In recent years, mortgage guidelines have been tightened. Documentation requirements have been expanded and followed more closely. A pre-approval gets you through the process and uncovers potential pitfalls long before you become obligated by a contract to purchase.

What advantages will I have once pre-approved?

You’ll be certain about the price range that’s best for you. You’ll know how much cash you’ll need to close, and you’ll know your maximum monthly payment. Understanding your limits will help you negotiate with confidence. Plus, since sellers like a sure thing, you’ll have an advantage over buyers who may not have been through the process.

How long is the pre-approval valid?

Your pre-approval is typically good for the “shelf-life” of the documents used. These will include a credit report, pay stubs, bank statements, W2s, tax returns, etc. The usable life of these documents will vary, yet it’s usually safe to say that your pre-approval is good for up to three or four months. During this time it pays to file all important financial documents so they’re readily available for future updates.

What if I change my mind?

That’s perfectly fine. There’s no obligation to purchase a home or use a particular loan program once you’ve been pre-approved. In fact, pre-approval simply helps to assure you know exactly what’s involved, that you are comfortable in a particular price range and that you are truly ready to make your move.

The process of purchasing a home is easier when you have information on your options in place before you make an offer. We’re here to help you get started, and it’s never too early to do exactly that. Give us a call when you’re ready.

i2Applying For a loan Just Got Easier!

Three ways to apply for a loan:

  1. Apply Online: Click here to get started!
  2. Call It In: Just call our office – we will answer your questions and give you the information you need to explore your loan options.
  3. Stop By Our Office: One of the best ways to learn about your loan options is to drop by and chat with us. We can help you get started with your loan applications in just minutes.

Contact us today to get started with your application, and discover how we can help make your dream of homeownership come true.

Items Needed For Pre-Approval

  • Last two years of ALL W-2’s, 1099’s, or K-1’s
  • Last two years Federal Tax Returns (ALL schedules, ALL pages)
  • Most recent 60 days of consecutive pay stubs
  • Most recent 2 months of complete bank statements (ALL pages, even if blank)
  • Most recent investment and/or retirement account statement(s) (ALL pages, even if blank)
  • Copy of driver’s license(s) (front and back)

The items above will not inhibit you from starting the loan process.

Your Mortgage Loan Steps

Steps required for a typical residential mortgage. Times vary according to your personal circumstances.

STEP 1
  • Loan application taken
  • Credit report ordered
  • Income, Asset, Credit Documents Requested & Received
STEP 2
  • Purchase contract received
  • Home inspection completed
  • Appraisal and title work ordered
STEP 3
  • Lock interest rate
  • Appraisal and title work received
  • File reviewed by loan processor
  • Loan package submitted to underwriting
  • Receive loan approval
  • Notify realtors, borrowers and escrow
  • Loan documents ordered
STEP 4
  • Loan documents prepared and sent to escrow
  • Closing HUD-1 statement approved
  • Loan documents signed and returned
  • Loan set-up for funding
  • Loan funds
  • Loan records
STEP 5
  • Move In
  • Congratulations! You are a homeowner!