Mortgage rates have fallen by over a full percentage point since Q4 of 2018, settling at near-historic lows. This is big news for buyers looking to get more for their money in the current housing
Are you serious about buying your dream home? Get pre-approved before you start searching!
You’ve been searching and searching and you finally find the house of your dreams! You want to quickly make an offer on it but you find out that you can’t afford it. Or you go to make an offer (which is 1 of 4 offers being submitted) and you find out that the sellers accepted someone else’s offer because they were pre-approved.
In today’s competitive marketplace, buyers need to be prepared when they are ready to make an offer! Having a pre-qualified or pre-approval letter shows you are serious about buying. Even if you are in the beginning stages of looking for a home, getting pre-qualified or pre-approved will allow you to know just what kind of home you can afford. Also, a lender may be able to show you some programs that you were not aware of that can assist you in your home purchase.
Working with a real estate professional throughout the process is beneficial as they will be able to recommend reputable lenders and answer basic questions.
What is the difference between a pre-qualification and pre-approval letter? A pre-qualification is just an estimate of how much you can afford to spend on your home. It is based on very basic information you give the lender. A pre-approval is a more in-depth analysis. A lender will require you to submit financial information and they will review your credit score to give you a specific loan amount as well as what your interest rate would be. A pre-qualification letter is good, but a pre-approval letter puts you in a better position to place an offer on a house because you know exactly how much you can spend.
What will you need to get pre-approved?
1. Proof of income: W-2 statements from the past two years, recent pay stubs as well as any additional income.
2. Proof of assets: bank statements and investment account statements to prove that you have the funds available for a down payment and closing costs.
3. Good Credit: Most lenders require a FICO score of 620 or above to approve a conventional loan. FHA guidelines allow approved borrowers with a score of 580 or above to pay as little as 3.5% down. The lower your score, the larger down payment you will most likely have to pay. If you are unsure as to whether or not your credit is good enough, speak with a lender early, as they can suggest ways to improve your credit score.
4. Employment verification: lenders may call to verify your employment and ensure that your job is stable.
5. Other types of documents: you will need to provide a copy of your driver’s license and your social security number so your credit report can be pulled. Also, be prepared to provide additional documents that may be required by your lender.
Have more questions on getting pre-approved? I can recommend a few outstanding lenders in the area! Give me a call or shoot me a text at 817-380-8193 or email me at Catherine.firstname.lastname@example.org.
Wife, Mom, USMC Veteran, Realtor. Whether you are looking to sell your home, buy a new one, or invest in an old one, I am here to help you!....
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You’ve been searching and searching and you finally find the house of your dreams! You want to quickly make an offer on it but you find out that you can’t afford it. Or you go to make an