How to get pre approved for a mortgage
- Two years of W2 forms from your employer
- Two years of federal tax returns
- Residential history for the past two years, including landlord contact information if you rented
- Pay stubs from the past 30 days showing your year-to-date income
- 60 days or a quarterly statement of all of your asset accounts, which include your checking and savings, as well as any investment accounts such as CDs, IRAs, and other stocks or bonds
- Any other current real estate holdings
Pre-approval means the lender has already done its due diligence and is willing to loan the money to you. Once you are pre-approved for a home, the lender will give you an official conditional loan approval letter that will help you in various ways:
- It will specify what type of loan you will most likely qualify for, weather FHA, Conventional, VA, Etc.
- You will now know how much a lender thinks you can afford thus saving time and money looking at Real Estate with-in your means.
- Will allow you to write offers quickly as most sellers will want to see a pre-approval with or close to submitting your offer. This will be very helpful in speeding up the process, especially in a very competitive market.
- It will let the sellers know that you are a serious buyer
The Bottom Line:
While pre-approval can be a pain, you’ll have to give all of that paperwork to your lender sooner or later anyway, why not do it on the early side and get a head start on the competition. Shop for your dream home with confidence!