Get Pre-Approved for a Mortgage – Purchase a Home

Purchase:

• FHA loans require a minimum down payment of 3.5% with a 580 credit score. 500-579 credit scores require 10% down payment.
• Conventional loans require a minimum down payment of 5%. If you’re a first-time homebuyer, a minimum down payment of 3% is required.
• VA loans require no down payment.
• USDA loans require no down payment.
• Non-QM loans require a minimum down payment depending on the credit score and program.

Property Type:

• Single Family
• 2-4 Units
• Coop
• Condo
• Townhouse
• Second homes
• Investment homes
• Manufacuted homes
• Mobile homes
• Mixed-use homes
• Condo-tel

How to Get Pre-Approved for a Mortgage?

A pre-approval letter determines how much money you can borrow to buy a home. We will look at your income, assets, and credit score to determine what you can be approved for. It is important to get pre-approved for a mortgage before you start searching for a home. This will give you an advantage over other buyers and help you close on a home faster.

Before you get pre-approved for a mortgage, it’s essential to gather all the necessary documentation. Lenders typically require the following documents:

1. Proof of Income: Gather your recent pay stubs, W-2 forms, and tax returns for the past two years.
2. Proof of Assets: Provide bank statements, investment account statements, and any other relevant asset documentation.
3. Employment Verification: Lenders may contact your employer to verify your current employment status.
4. Credit History: Obtain a free credit report and review it for any errors or discrepancies.
5. Identification: Have your driver’s license, passport, or any other valid identification document ready.

What are the Benefits of Getting Pre-Approved for a Mortgage?

Obtaining a mortgage pre-approval offers numerous benefits, including:

1. Budget Clarity: With a pre-approval, you know your budget range, allowing you to focus on homes within your price range.
2. Competitive Advantage: Sellers are more likely to consider offers from pre-approved buyers, giving you a competitive edge in the real estate market.
3. Faster Closing Process: Pre-approval streamlines the mortgage process, reducing the time it takes to close on a home.
4. Negotiating Power: Pre-approval gives you the confidence to negotiate with sellers, knowing you have the financial backing to proceed.

How to Maintain Your Pre-Approval?

Once you have been pre-approved for a mortgage, it’s important to maintain your pre-approval status throughout the home buying process. Here’s what you need to remember:

1. Financial Stability: Avoid making any major financial changes, such as switching jobs or making large purchases, as these can impact your pre-approval status.
2. Monitor Your Credit: Continuously monitor your credit score and report to ensure there are no surprises or issues that could affect your pre-approval.
3. Consult Your Lender: Stay in touch with us and inform us of any changes in your financial situation. We can guide you on how these changes may affect your pre-approval.

By following the steps outlined in this article, you have gained valuable insights into getting pre-approved for a mortgage and increased your chances of securing a favorable mortgage. Remember to gather your documentation, research mortgage options, get pre-approved, and maintain your pre-approval status throughout the home buying journey. Armed with this knowledge, you are well on your way to making your dream of homeownership a reality!