Financing Your Home

Why Get Pre-approved For a Mortgage Before You Buy?

• The seller will know you have already been to a lender and are qualified to buy their home.
• If the seller would receive two offers the buyer who has been pre-approved has a definite advantage, and the seller is more likely to accept that offer even through it may be less than the other offer.
• The buyer knows what price home he/she can afford and what monthly payments he/she is comfortable paying.
• The buyer will be able to close sooner because some of the necessary paperwork is already completed by the lender.

Information Needed at the Time of Your Application

• Social Security number of all applicants
• Residence addresses for the past 2 years (include landlord's address)
• Names and addresses of each employer in the past 2 years
• Recent pay stubs and previous 2 years' W-2 statements
• Names, addresses, account #'s balances and monthly payments for all open loans (include statements if available)
• Schedule of real estate owned (include lender, loan amount, balance and account #'s)
• Money for credit report and appraisal
• If self-employed, see loan officer for requirements
• Certificate of Eligibility and DD214 (VA only)
• Statement  of service (active duty only)
• Picture I.D. (FHA & VA)

Pre-approval vs. Pre-qualification

Pre-approval is more formal than pre-qualification and it takes longer: To get pre-approved you provide that same paperwork you will be asked for when you make a formal loan application. This will probably include your credit history, employment, and down payment funds, all of which will be verified.

Pre-approval guarantees your loan, but it is not a mortgage contract. You can't get the mortgage until the lender can appraise the property and do a title search. (These steps happen after your offer to buy a house is accepted.) When you formally apply for a mortgage, certain facts may have to be reverified. This depends on how much time has passed since the pre-approval.