Myth: It doesn’t matter when you get prequalified to buy a house!
Fact: It is VERY important to get prequalified/pre-approved prior to house hunting!
There is nothing worse than visiting a home and absolutely falling in love only to find out it isn’t within your budget! It’s like driving a Porsche and realizing you can only afford a Mazda…no offense Mazda drivers! From that point forward you will compare every house you see to the one you REALLY wanted. Don’t get caught up in that emotional rollercoaster! Get prequalified before you even start looking online. Know your budget and stay within it!
What is the difference between getting pre-qualified and pre- approval for a mortgage loan?
What is Pre-Qualification? A pre-qualification is a quick check to see if you qualify for a mortgage loan. This is based on verbal information given to the lender usually over the phone and takes about 15-30mins.
What is Pre-Approval? A more official process to see if you qualify for a mortgage. This process requires a credit check, review of financial documents, and a full written (or online) loan application filled out. This process can take 1-2 hours…. depending on how organized you are and how long it takes you to find the financial paperwork your lender needs!
Why you should get Pre-Approved:
Pre-approval gives you an idea of how much you can borrow and how much you will need to bring to the table at closing. Eliminating just one of the many unknowns throughout the process can leave you feeling more comfortable and more at ease.
It allows sellers to know that you have the ability to fulfill the offer you make on their home! It may even help you standout in a multiple offer situation so that you won’t miss out the home of your dreams that is within your budget!
It gets some serious leg work out of the way. You will have enough ahead of you between inspections and packing…. you don’t need to be looking for your last 3 years of tax returns a week after you packed up your filing cabinet. Getting all of that done up front saves you time and energy in the end!
Here is a brief list of what your lender may need when getting pre-approved:
Last 2 years W2’s or 1099’s
Past Months Paycheck stubs
Last 2-3 years tax returns
Bank Statements
Asset statements on bank, retirement and brokerage accounts
All information of any other debts including currently owned homes.
Below are some awesome Lenders that can help YOU get pre-approved!
Teresa Rutherford
Caliber Home Loans NMLS #447904
Direct: 757-286-6009
teresa.rutherford@caliberhomeloans.com
Scott Sagar
Atlantic Bay Mortgage NMLS #70434
Direct: (757)-434-9905
Office: (757)-873-4141 ext 338
scottsagar@atlanticbay.com
Jeremy Jordan
Atlantic Bay Mortgage
Direct: (757)-434-9905
Office: (757)-873-4141 ext 338
jeremyjordan@atlanticbay.com
