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Getting Qualified, Getting Approved
Most lenders can “pre-qualify” you for a mortgage over the phone. They will ask you about your income, debt, assets, and credit history. Based on this verbal information, they can give you an estimate of how much home you will qualify for. However, this is no guarantee that, in the end, you will actually be approved for a loan. For this, you will need to be “pre-approved” (although a pre-approved loan is still subject to any last-minute financial information that the lender receives about you and any co-borrowers).
A letter of pre-approval can help you get the winning bid on a home that has multiple offers. This is because sellers prefer not to tie the house up and wait to see if a buyer will, indeed, be approved for a loan. To be pre-approved, you need to apply for a loan with your chosen lender, provide all of the necessary paperwork, and possibly pay application fees and/or credit report fees.
What You'll Need
The following is a list of items you will need to provide when you apply for your loan. If your situation is not a typical one, your lender may request additional documentation beyond what is shown below.
- Employment history
- Income information (copy of pay stubs and W-2 Forms)
- Source of down payment & closing costs (copy of bank statements and brokerage statements)
- Credit information
- Information about already-owned real estate and any other assets
Want a Great Lender?
It is a good idea to speak with a few different loan officers about the products they offer - many have access to a wide array of loan types but most only will know the details of ten to twenty that they regularly use. We would be happy to refer you to an excellent loan officer with whom we have worked before and who has earned our trust and admiration. (We receive no compensation for such referrals.) For a lender referral, please contact us.
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