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The Importance Of Getting Pre-Approved

In today's ever-changing real estate economy, it is more important than ever, to be "pre-Approved" before you start looking for a home to purchase.  In days gone by, a buyer could get away with a "pre-qualification" letter as loans were being given out like candy.  Times have changed.  It is in your best interest to talk to a lender in detail, provide the documentation upfront and get in a good negotiating position by having your "Pre-Approval". Some key reasons:

• You and your lender will be able to determine exactly what you can afford
• You will not be disappointed by looking at homes you cannot afford
• Your real estate consultant will be able to use this as a strong point during negotiations
• You will feel confident and comfortable with your purchase

Following is a list of items you may need to get "Pre-Approved" and ultimately fully approved for your home purchase:

• Addresses of residences for last two years
• Social Security number
• Driver's license or other valid ID
• Names and addresses of employers for last 2 years
• Recent pay stubs showing year-to-date earnings
• Federal tax returns for last 2 years
• W-2's for last 2 years
• Last 2 months statements for all checking and savings accounts
• Loans: names, account numbers and payments on all loans
• Real estate loans: names, addresses, account numbers and payment amounts on all other real estate loans
• Credit card: names, addresses, account numbers, and payment amounts
• Value of personal property; your best estimate on value of autos, boats, jewelry, furniture, computers, electronics, etc.
• For a VA loan, certificate of eligibility
• Divorce decree, if applicable
• Verification of funds for down payment and closing costs

What to avoid during the loan process:

• Do not change jobs
• Do not pay off existing accounts unless the lender tells you to do so
• Avoid switching banks or moving your money to another institution
• Do not make any large purchases