Getting pre-approved* by a mortgage lender shows real estate agents and sellers that you are a serious, qualified buyer. And being “qualified” has its benefits. In fact, being pre-approved indicates that you are a serious buyer and may even put you ahead of other applicants once you make an offer!
Pre-approval also has additional perks worth noting. For instance, it helps you determine how much house you can afford and how much money you can borrow. That way, your time won’t be wasted looking at out-of-reach properties.
Part of the pre-approval process includes filling out a loan application. To establish your employment history and financial capabilities, you must provide the lender with the following income documentation:
- Pay stubs for 2-3 months
- W-2 forms for the past 2 years
- Most recent 3 months’ bank statements
- All credit account and debt information
After the mortgage loan officer receives these documents, he or she will then pull your credit report, assess your financial capabilities, and inform you of how much money you can borrow towards your home.
* Pre-approvals are subject to property underwriting and appraisal. Borrower must satisfy pre-approval conditions outlined in commitment letter. Loan amount subject to property appraisal.