How do I get pre-approved for a loan?

One of the first steps to get your home buying process started is to get pre-approved for a loan. Having a loan pre-approval letter readily available when you start looking at homes can give you an advantage as it shows the seller that you are a serious buyer and not just looking to look. In todays competitive market, more sellers are asking to see a loan pre-approval letter before you can even tour the house. Another advantage is knowing the loan amount you qualify for can help you narrow down your home search by what price range you should be looking at.

Below are the documents a loan officer will need to see to determine what type of loan you qualify for and the loan amount:

1.      Your most recent paystubs (2 months)

2.      W-2’s from the last 2 years

3.      Income tax returns from the last 2 years

4.      Most recent bank statements (2 months)

5.      Copy of your driver’s license and social security card (Green card if not a US citizen)

Where can I find a loan officer? If you are already working with a real estate agent, I would recommend talking to your agent to ask for a referral (real estate agents should have at least one loan officer they know). Or you can always check with your bank.

It may seem like a lot of work to get the pre-approval, but once you have it, your home buying process will be a lot less stressful. With the market being hot right now, you want to have all of your paperwork ready so when you find the house you love, you can jump on it and submit an offer right away.