Now More Than Ever: Why You Need Your Pre-Approval Letter First

By
Real Estate Agent with United Real Estate TX #0552717

Now More Than Ever: Why You Need Your Pre-Approval Letter First.Pre-approval

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!

Posted by

Lorrie Semler, e-PRO, GRI, SRES, CPRES, CRS
Addison Resident/Addison Specialist                                                      Subscribe Button
Real Service. Real Results. Real Estate.
United Real Estate
972-416-3417

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Rainer
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Rob Lyszczarz
RE/MAX Properties Unlimited - Westfield, NJ

Lorrie,  I think that you always need to get the pre approval letter, however the meaning of the letter changes from a tool to show strenght, to a necessity now that the market has become a sellers market.  Thanks for sharing.

Mar 25, 2013 04:29 AM #1
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Rainmaker
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Lorrie Semler, REALTOR® in the Dallas area. Call/text 972-416-3417

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