Our market is extremely competitive at the moment, so getting a pre-approval is paramount for buyers. Today I’ll let you know what you’ll need to get to that point.
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One no-brainer aspect of preparing to buy a home is getting pre-approved for a mortgage. Do you know what it takes to get pre-approved for a mortgage? If not, then you’re in luck. I’ll be discussing the process for you today.
In a seller’s eyes, a buyer with a pre-approval is a buyer with a suitcase full of money. In our ultra-competitive market, pre-approval could be the difference between having an offer accepted and watching your dream home slip into someone else’s hands.
Here’s what you’ll need in order to get pre-approved:
1. Proof of income. At a minimum, the lender will want to see pay stubs for the past 30 days. If you’re self-employed, they may also require the last two years of your tax returns or statements.
1. Proof of income. At a minimum, the lender will want to see pay stubs for the past 30 days. If you’re self-employed, they may also require the last two years of your tax returns or statements.
2. Proof of assets. You’ll need to provide statements for your checking, savings, or other investment accounts in order to prove that you have the assets to put your down payment down on your dream home.
3. Good credit. Most lenders reserve the best rates and the lowest closing costs for those who have the highest credit score. Going to the right lender is critical—if you have a lower score, find a lender who can coach you through the process to repair your credit and improve your score.
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In our ultra-competitive market, pre-approval could be the difference between having an offer accepted and watching your dream home slip into someone else’s hands.
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The lender has committed to lending you a given sum of money for a certain period of time (typically 90 days). Once you’re pre-approved, what happens next?
Pre-approval will make the buying process faster, more convenient, and less stressful for you. Most importantly, it will make it more likely that your offer will be accepted anytime there’s a competing offer situation.
If you’re thinking about buying a home, don’t hesitate to reach out to me directly. I know several of the top mortgage lenders in the state of Minnesota and would be happy to make the introduction.
