Today we’re going to talk about a subject that is very important to us: pre-approvals.
The pre-approval is definitely the most important aspect of submitting an offer on a home. As a listing agent, Eva will recommend that a seller goes with the offer that has the strongest pre-approval—not the one with a pre-qualification. The letter has to state that all of your documents have been reviewed and that the only thing missing at this point is the appraisal.
Prior to starting our real estate company, I was a mortgage broker, so I understand the pre-approval process. I’ve found a few important things over the last 20 years of being in the business.
You will save thousands of dollars if you focus on getting the pre-approval done before you go out shopping for homes. You will also make the entire buying process easier and less overwhelming.
When people go out shopping first, they fall in love with a home. Then when they talk to a lender, they find that they are buying either way over their heads or way below what they can afford, and now they are stuck because they are under contract.
There are a few things you should have ready when you go see your loan officer:
- A month of pay stubs.
- Two years’ worth of tax returns.
- Three months’ worth of bank statements. This shows your lender where your down payment is coming from.
Those are the main things everyone needs. Other documents you may need include anything about a divorce, bankruptcy, a short sale, or child support.
Make sure you bring all of the documentation with you when you talk to your mortgage professional about a pre-approval. You will save thousands of dollars and a lot of heartache.
Good mortgage brokers will also find you free money. There are a lot of great down payment assistance programs out there. We can help you do that. I’ve taught classes on how to get free money; I’m very passionate about it.
There are a lot of agents out there who will try to talk you out of VA loans. That is not the case with us. We are huge VA advocates and we love helping veterans purchase a house.
In a future video, we’ll cover all of the down payment assistance programs available to you as a homebuyer.
In the meantime, if you have any other questions about pre-approvals, just give me a call or send me an email. I would be happy to help you!