In years gone by getting a mortgage was as easy as going to Wal Mart to pick out a pair of pants. These days it can be more difficult for even someone with good credit to get a home loan. Before even looking at real estate, you will want to get a pre approval letter from your lender. The pre approval letter will tell both your agent and the seller that “yes, I can afford this property” and will assure all parties of a quicker closing if a price can be agreed upon. With a pre approval letter the buyer is in a much better position to negotiate.
Below are some tips you should know when seeking a pre approval letter from a lender.
No need to go overboard, but talking to 2-3 lenders will give you some options and may get you a better rate.
Prepare Financial Papers
Talk to your lender to see what they want, but most likely will include: tax returns, W2’s or 1099’s, bank statements, pay stubs and investment statements.
Know That You Are Not Obligated to One Lender
Just because you have a pre approval letter from a lender, you are not obligated to go with that lender. If you decide to go with another lender, you can.
Pre Approval Letters Expire
Make sure you know when the expiration date is on your pre approval letter. Typically they are good for 90 days. If you are getting close to the expiration date, you may want to ask your lender to re validate the letter with a new date.
For further questions please feel free to contact Pete & John.