Mortgage Preparation

Buying a home is a highly valuable investment. For most people, it’s the largest purchase they’ll ever make. That’s why being prepared and making informed decisions at each step is so important.

You’ve likely heard that the mortgage industry has changed over the past several years. It’s true. Newer requirements and a more involved application process have made getting a loan more arduous and time-consuming than ever. Fortunately, there are many steps you can take to make it the process more smooth and efficient.

Ready to Get Pre-Qualified?

A pre-approval from a reputable mortgage lender establishes how much you can reasonably spend on a mortgage and confirms that you’re qualified to apply for a loan up to that amount.

Pre-qualification documents:

  • the details of your investment, including down payment and closing costs
  • a close estimate of your monthly principal, interest, taxes and insurance (PITI) fees
  • loan options you qualify for and fit your specific needs

To get pre-qualified, you’ll need to provide:

  • Your two most recent pay stubs
  • Your two most recent bank statements
  • Two years of your most recent W-2s or 1099 forms

Getting a pre-qualification before you actively start looking for a home is best. When you’ve found the one you want, you’ll be ready to make a real, solid offer. Also, sellers will be more inclined to accept your offer knowing you’ve been carefully reviewed by a lender and that you qualify for a loan.

Remember: Pre-approvals and pre-qualifications are not the same. Pre-qualifications don’t require a thorough credit check and have minimal impact on your true borrowing ability.