Achasta Realtors’ Tips on How to Get Pre-Approved
Looking to buy a home in the near future? Make sure you get pre-approved first! In this blog post, our team of Achasta realtors will give you some tips on how to get pre-approved for a mortgage. We’ll cover everything from what to bring with you when meeting with your lender, to what happens after you’re approved. So whether you’re a first-time buyer or experienced homeowner, read on for our best advice!
What is pre-approval and why do you need it as a buyer?
First things first, what is a pre-approval? A mortgage pre-approval is an official document that confirms how much money you’ve been approved for by your loan provider. This letter shows sellers and realtors alike that you’re serious about finding the right home or investment property (and can afford it too!). It’s also a great way to gauge your interest rate, as well as the amount you’ll be able to borrow.
How to get pre-approved for a mortgage
Getting pre-approved for a mortgage isn’t difficult, but it does take time. To get started on your application, make sure you have the following documents handy:
- Proof of income – pay stubs, tax returns
To buy a house, you must first provide documentation that shows your income and the source of it. The buyer’s agent will generally ask for two recent years’ worth W-2 wage statements or pay stubs with year-to-date figures aalongsideany other sources such as alimony payments or bonuses from work history if applicable – all in order to ensure they are purchasing property at fair market value!
- Proof of assets – bank statements, investment account statements, etc.
The borrower needs to have bank statements and investment account statements handy because they’re going to show that you’ve got funds for the down payment, closing costs, as well as cash reserves. The percentage of your purchase price which is used when calculating pre-approval varies by loan type–some come with a requirement where buyers must purchase private mortgage insurance (PMI) or pay annual premiums if their credit score isn’t high enough already though many banks will approve without any additional conditions even though these optional policies may offer protection against interest rate increases in case something unforeseen happens.
- Your driver’s license or passport
This is a no-brainer, but you’ll need to provide your identification for the pre-approval process.
- Employment history
It’s also important that your lender has an understanding of your job stability and length of employment. Your loan provider will want to know that you’ve been with your current employer for at least two years and have a stable job history.
- Recent credit score
If you’re looking to buy a home, your lender will also want an up-to-date copy of your credit report so they can evaluate how much cash you’ll be able to put down on the property at closing or if there are any other issues that need attention before applying
- A credit report from one of the three credit bureaus (Experian, Equifax or TransUnion)
This is a report that shows an individual’s credit history. It will list all of your open and closed credit accounts, as well as any late or missed payments.
- Education verification – transcripts or diploma
Your lender may also want to see copies of your education transcripts or diploma especially when you are a first-time buyer.
- Employment verification letter
If you’re self-employed, your lender will want to see a letter from your accountant or attorney stating that you have been in business for at least two years. You should also be prepared to answer any questions about debt-to-income ratios (DTI), down payments, credit score, and other financial details. The pre-approval process usually takes a few days, but it’s best to start gathering your documents sooner rather than later so you’re prepared when the time comes.
Once you have all of this information, meet with a lender and start the application process. It’s important to note that pre-approval is not a guarantee for a mortgage – your final approval will depend on a number of factors, including your credit score and debt-to-income ratio.
What happens after you’re pre-approved?
After you’ve been pre-approved, it’s time to start looking for properties! As a buyer, here are some things to keep in mind when searching for your dream home:
- Work with experienced Achasta realtors who can help you find the right property and navigate the buying process.
- Be prepared to make an offer – in a competitive market, you may not have much time to think about it!
- Search multiple listing service websites for new developments, for Achasta real estate for sale near you, or other properties for sale in the market.
The benefits of getting pre-approved before you start looking at homes:
Getting pre-approved for your mortgage before you start looking for Achasta homes for sale or other properties for sale will show sellers that you’re serious about buying. You’ll also know how much house you can afford before even starting the search for properties! Moreover, it gives you an idea of what your monthly payments will be.
This is especially useful if certain areas appeal to you but are out of budget.
Questions to ask your lender before getting pre-approved:
Here are some questions that you should ask your lender before getting pre-approved:
- What type of mortgage do I qualify for?
- How much money can I borrow from this bank or credit union?
- Is there a minimum amount of time to be approved for a loan with them?
- What are the fees associated with a mortgage?
- How long will it take before I can get pre-approved?
- Do you offer any special programs for first-time buyers like me?
If you’re ready to buy your dream home in Achasta, contact a professional real estate team. Gold Peach Realty is here to help with everything from pre-approval advice and property tours, to negotiation tactics on selling price! Contact them for more information about buying or selling a house in North Georgia’s Achasta community.