THE POWER OF PRE-APPROVAL
PRE-APPROVAL This is the first step in the home buying process. It is vital to be pre-approved in today's market when sellers are receiving multiple, competitive offers. A pre-approval will add power to your offer and shows sellers you are serious. To get pre-approved, you will provide documentation, and receive a conditional commitment in writing for an exact loan amount.
Click for PRE-APPROVAL
HOME BUYING FINANCING STEPS
1. Get PRE-APPROVED for a mortgage. You will need the following documents:
• W-2’s (2 most recent)
• Bank statements
• Paycheck stubs
• Two forms of ID (one photo)
• Recent mortgage statement, taxes and insurance receipts for each property you own
• If you recently sold a home you'll provide the HUD 1 from that sale
• Tax returns if your income varies as a result of commission earnings, bonus earnings, etc.
• Self employed documentation may vary
2. With a Realtor, find your new home and execute
an Agreement of Sale.
3. Lock in interest rate.
4. Receive and sign loan packet.
5. Order appraisal.
6. Underwriting conditions / clarifications.
7. Receive the clear-to-close.
8. Review closing disclosure with your Realtor.
9. Settlement day “Move in!”
WHAT YOU NEED TO KNOW
DON'T MAKE ANY MAJOR
PURCHASES OR APPLY FOR NEW CREDIT of any variety. Did you know that
applying for a credit card could lower your score by as much as 5 points or
more? This can also change your income to debt ratio which can put you at risk
for delaying settlement or denial of loan.
DO WORK WITH A
BROKER A mortgage broker can shop around to various lenders
and numerous products to find the best product for you. A Broker has more
flexibility in finding the right product just for you.
DO BEWARE OF THAT
LOW INTERNET RATE Be careful when comparison shopping for a
mortgage on-line. You might find a low interest rate, but that low rate can
come with extremely high closing costs and fees. Make sure you receive a good
faith estimate from your lender. This should give you a good idea of the true
cost of your loan. Additionally, you must be careful of scams. Never send any
money or sensitive information over the internet unless you are certain of who
you are dealing with. It is wise to use a lender that is local so they can be
committed to you and your closing date timeline.
DON'T LET A POOR
CREDIT HISTORY HOLD YOU BACK We will help you. Everyone finds
themselves in tough financial situations at one point or another. Don’t allow
previous problems to discourage you from trying for a fresh start.