If you are absolutely serious about buying a home, it’s time to get pre-approved for a mortgage! This step in the process is recommended to be taken prior to starting your house hunt. We know that starting off with paperwork isn’t as appealing as jumping into the actual home search, but getting pre-approved will help you tremendously in your hunt! A pre-approval is basically a written statement from a lender stating the lender’s preliminary determination that a borrower would qualify for a particular loan amount. The loan amount and determination is based on income and credit information.
So why is it so important to have one of these before shopping around? Well you wouldn’t want to go to a grocery store without your wallet would you? Getting pre-approved will give you an accurate detail on how much home you can actually afford, which can help narrow down your search. You will also be a much more attractive buyer to sellers, because you have proof that you are a credible buyer. In a competitive market, you want to stand out, especially when submitting an offer.
What is required for the pre-approval process?
To demonstrate your financial history and reliability, the following may be asked of you by a lender to get pre-approved:
- Personal information: Social Security Number, Drivers license, Marital Status, Address, Contact info, etc
- Recent bank statements
- Employment information: Pay stubs and W-2s from the last 2 years
- A credit report will be pulled by the lender
It’s important to note that a pre-approval does not guarantee a loan. For more information regarding what you may need to be pre-approved, please speak with your lender. If you do not have a lender, contact us and we will set you up with one of our preferred lenders.
I’ve been pre-approved, now what?
As we noted before, getting a pre-approval letter does not guarantee a loan. In the meantime, make sure to keep your finances in order. Avoid opening any new credit accounts, and make sure to keep up on your current credit accounts. But now that you have that piece of paper, its time to shop until you drop! Where do you want to live? Do you want a new construction home or a existing home? How many bedrooms do you want? Oh the choices!
Start your home search online here: http://www.viewhomesinrichmond.com and view all homes for sale in the Central Virginia region. Search by schools, zip, # of beds and baths, etc, and give us a call at 804.NEW.HOME so we can take you to some of your favorite houses. We’ve already helped over 200 people just like you find their next home. Our entire team is dedicated to helping buyers every step of the way from start to finish. Let us help you!