12 Weeks to Homeownership – Week 2
Welcome to the 12 weeks of homeownership series and congratulations! You have survived all the decision making you had in week 1.
Now it’s week 2, and it’s time to call a lender to get pre-approved.
First, I want you to get your documents together. You will need:
1. Your last two pay stubs for yourself and anyone else who’s going to be on the loan with you
2. The last two years of tax returns – both state and federal
3. Two months of your bank statements for all of your accounts
4. Statements for any other assets you may have – such as 401K, IRA, etc.
Once you have these documents together, scan them so they can be sent electronically if needed then keep them in a handy place where you can access them quickly if needed.
Next, you’re going to need to complete the loan application and sign the credit authorization form so your lender can pull your credit.
Most of this can be done online with your lender.
At this point, your loan officer may have enough to determine if you may be pre-approved. We prefer to sit down with you, face to face, and understand your homeownership goals, what you think you can afford, and review your documentation together. This way, we can determine your eligibility and ask any pertinent questions.
If it appears that you may be eligible, we can provide you with a pre-approval letter that you can use in the case of submitting an offer on your home. This is a great thing! This letter is usually for the amount you intend to offer, but not for more than you would qualify for. It is advisable that you go through the mortgage underwriting process to give you more assurance in getting your loan approved.
There are many issues that can come up in a fully underwritten pre-approval that can’t be foreseen This week, you’ll learn about defining your goals when it comes to homeownership. Don’t forget to give our Folsom mortgage team a call today! in a pre-qualification review.
Your loan officer should be on that is experienced and knowledgable – one that can identify any irregularities that may require a full underwriting before you start your house-hunting process.
Now the pre-approval process usually takes just a few hours. To be fully underwritten, it takes a few days. Either way, you should be able to complete this process within week 2.
If you pass go, you can hire a realtor. You may already have an agent in mind or your lender might be able to refer you to one. If not, talk to several agents and pick the one that knows the community you want to live in, understands the market, and can represent your needs in negotiations.
Hiring a great agent is as important as working with a top lender.
Well this week, you’ve got pre-approved! We’re fully underwritten and now you’ve got your pre-approval letter in hand and you have an awesome realtor to work with.
Remember – our Folsom mortgage team is here to answer any questions you may have! Don’t hesitate to give us a call at (916) 985-3200.