Getting Pre-Approved may be easier than you think. The best thing is to get your application taken to find out if you can buy now or if you may have to wait a few months before you are able to. Mortgage Companies now have programs that allow 3% down or in some cases, no money down.. Here are a few things to prepare you for when you are ready to start searching for a home. Here are some tips to help you get this important document in your hand.
Importance of pre approval as a buyer
Pre approval is a kind of promise a bank makes to an individual that it will arrange the money that he needs for buying a home. It is an important document in your hand when starting your search for a home. It tells homeowners that you are a serious buyer and also have the backing of a bank. It is also reassuring for your real estate agent and makes him work that much harder to find the kind of homes you are looking for.
Provide Income Documents
Providing income documents are part of the guidelines which allows the mortgage company to review in order to determine a pre-approval. Submit your 30 day pay stubs and your last 2 years of W2s to verify employment of 2 years. Also give proof of any secondary income that you may have.
Complete an Online Application
Banks need to run a credit check before they take a decision on disbursal of mortgage loan. You can provide your bank with your driver’s license or passport for this purpose. Your credit history and credit score play a crucial role in deciding whether you are eligible for a mortgage loan or not. A high credit score reflects your trustworthiness to the bank. It is advisable to apply for pre approval when you know that your credit score is decent enough for a mortgage loan.
Once you make available all relevant information, it becomes easy for the bank to hand over preapproval letter to you.
Give information about any other assets you may own
Banks take into consideration any movable or immovable assets that an individual owns in his name before they arrive at the amount of loan that can be disbursed to him. These assets include property papers, ownership of car or jewelry, ownership of plant or machinery, and so on. Lets get that online application complete so you can be pre-approve today.