No matter how many times you do it, buying a home is a major financial and emotional event. I work very hard to help ensure that the entire home loan process is stress free for you. Together we can review the long-term ramifications of various financing options by intelligently evaluating different strategies long before you make an offer. This is best done with a pre-approval meeting.
I will gather information from you about your income and debts and make a preliminary financial determination about how much house you may be able to afford. I will order and review your current credit report to do this, and use the information that you provide about your income, employment, assets, and liabilities in order to pre-approve you. And so the pre-approval is only as good as the information that you give, and is subject to verification of that information during the formal application process. A pre-approval requires that you provide a few basic documents – such as a recent pay stub, last year’s W-2, and a bank statement. The documents needed will vary depending on
your particular situation, but you can get a good idea of what is needed for a pre-approval by clicking here.
It’s a good idea to know how expensive a home you can afford before you start shopping for one -so you don’t waste time looking for properties that are out of your budget. A pre-approval meeting will help with this. We can begin to discuss options that are tailored to your unique financial situation – which can help to limit your stress level during this major life event.
If you can provide a pre-approval letter with your offer to purchase, real estate agents and sellers will take your offer more seriously, because you have already taken steps to obtain financing with a lender, and a lender has already found a loan that works for you. A pre-approval letter may sway a home seller to negotiate with you as opposed to another buyer who is not pre-approved. And you will be in a position to close more quickly and smoothly, since you already know what will be required to get your loan approved.
You will notice that I have used the term “pre-approval” and not “pre-qualification” and that is for a good reason. Some lenders will write a pre-qualification letter simply based on a conversation with you. I only write pre-approval letters – meaning that I always pull and review a current credit report, and I analyze your complete loan application, including your supporting income documentation such as tax returns if you are self employed.