Now More Than Ever: Why You Need Your Pre-Approval Letter First.
You search and search. Finally, you find the perfect home! You (and several other happy families) submit an offer.
Unless your agent sends the lender's pre-approval letter along with your offer, chances are, your offer will not get the serious consideration it deserves if the other happy families have sent pre-approval letters with their offers.
It has become a seller's market. The number of homes for sale is down, the demand is up. Sellers do not want to risk taking your offer only to find out later that you can't get a loan.
So before you begin the search for your home, contact a lender (or two or three). Find out how much you can afford, find out what the payments will be.
At a minimum, you'll need the following:
- paystubs from the last 30 days
- copy of last year's W-2 (if FHA loan, most recent 2 years)
- bank statements from the past 2 months
- savings/investment account statements from the most recent month
- name & phone nuber of homeowner's insurance agent & the declarations page from your current policy
- valid driver's license or photo ID
- valid social security card
- if renting, 12 months of cancelled rent checks
Depending on your circumstances, you may need additional documents:
- letter explaining derogatory credit or bankruptcy
- copy of bankruptcy petition and discharge (if declared within past 7 years)
- copy of divorce decree and property settlement (if applicable)
- copy of most recent 2 years' complete tax returns (if self-employed)
So don't lose out on your dream home. Contact a loan officer FIRST!
If you'd like recommendations, I'd be delighted to supply contact information for my favorite loan officers!