Getting pre-approved is one of the first and most important steps when you’re ready to buy a home. Not only does it show sellers you’re serious, but it also helps you understand what you can realistically afford. Here’s how to do it, step-by-step:
1. Check Your Credit Score
Before applying, it’s a good idea to know where you stand. A higher score can mean better interest rates, so make sure to check for any errors or ways to improve your score if needed.
2. Gather Financial Documents
Lenders will need documentation to verify your income, assets, and debts. Common paperwork includes:
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Pay stubs or proof of income
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W-2s or tax returns (last 2 years)
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Bank statements
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ID and Social Security number
3. Choose a Lender
You don’t have to go with your bank! Compare a few mortgage lenders or brokers to see who offers the best rates and service. A local lender or someone recommended by your agent can also make the process smoother.
4. Submit Your Application
Once you’ve chosen your lender, you’ll fill out a mortgage application (often called a “1003” form). This gives the lender permission to pull your credit and evaluate your financial info.
5. Get Your Pre-Approval Letter
If everything checks out, your lender will issue a pre-approval letter showing how much you’re qualified to borrow. This letter is your golden ticket when house hunting—it shows sellers you mean business!
Why It Matters:
In a competitive market, being pre-approved can give you an edge over other buyers. It also helps streamline the home-buying process, saving you time and stress down the road.
Thinking about buying a home and not sure where to start? I’d love to connect you with a trusted local lender or answer any questions you have. Let’s make your homeownership goals a reality! đźŹ
