There are so many benefits to getting pre-approved for a loan by a lending professional.
As mentioned, in this competitive market, if there are multiple offers, your offer will be taken more seriously by the seller. Some sellers won't accept an offer today without a pre-approval letter attached. Less than 10 percent of buyers in 2012 got loan pre-approvals according to Home Mortgage Disclosure Act data compiled by LendingPatterns.com. This is changing fast. To stay competitive, you must get pre-approved.
Getting a pre-approval will also benefit you by potentially helping narrow your home search. This can help define your search criteria with far more accuracy.
Keep in mind that there is a difference between pre-qualification and pre-approval with a lending specialist. Pre-qualification, is more like an estimation of the amount for which you might expect to get approved. Pre-approval, on the other hand, is more preferable because it confirms that you meet the necessary criteria to borrow at a certain level. Pre-approval is a more in-depth assessment of your circumstances.
Here's a basic list of what you will be asked to provide in your pre-approval process (will vary from lender to lender) :
- Your social security number (for an accurate credit check)
- Copies of your checking and savings account statements for the past six months.
- Documentation of other assets you may hold, such as stocks and bonds.
- A recent pay stub that confirms your earnings.
- A list of all debt.
- Your last two years of income tax returns.
I am always here to help you on any aspect of buying or selling a home. I can help you with any aspect of getting pre-approved, including introducing you to top local lending professionals. Give me a call today!
405 Realty Metro First Realty
405-924-0569 405-703-1333
www.facebook.com/405Realty
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