Getting a loan preapproval is an easy process that needs to be done before you begin your home search for the following reasons:
1.
You and your agent need to look at homes in a realistic price range.
2.
Sellers and their agents require reapproval letters be submitted with every offer, so make sure your agent has a copy of this document ready to go should you find a house you love and want to make an offer.
3.
Your lender will explain expenses that you can expect when purchasing a home. Understanding associated home purchase expenses allows you to budget accordingly.
How to apply for a preapproval letter:
1.
Contact the lenders) of choice and find out how to complete and sign a residential loan application and any required disclosures. Many lenders in our area allow you to fill this application out online, so be sure and ask if this is a service they offer.
2.
Set up a time to meet with your lenders).
3.
If your time is limited and you want to move quickly, bring the following items with you to your initial meeting:
What to bring with you to lender meetings:
Copy of drivers license or photo ID for each borrower.
Copy of three most recent pay stubs for each borrower. (If you're retired or disabled, provide a copy of "Statement of Benefits" letter.)
Copy of complete Federal Tax Returns for the past 2 years.
Copy of W-2s and/or 1099s for the past 2 years for each borrower.
Copy of checking and/or savings account statements for the past 2 months.
Copy of 401K and/or investment statements if funds are being used for down payment.
