Our team can match you with a preferred lender and help you get pre-approved for your loan.
Obtaining a loan is one of the quintessential parts of buying a home. In a perfect world, we would all pay $500,000 cash for our dream home and call it a day. Unfortunately, if you’re like the other 87% of the country you will need to obtain a loan.
Each real estate professional is different, but here at Korman Gerrity we pride ourselves on preparing our clients for success. We suggest to our clients that they ‘put the horse in front of the cart’ and get pre-approved with a lender we know and trust prior to starting their house hunt.
In order to obtain a pre-approval or pre-qualification from a mortgage broker or bank, you will need to have the following items on hand to provide to your lender:
- First, you will fill out an application; it will ask detailed information about you such as your social security number, current accounts payable, bank accounts and other sensitive information.
- You will provide copies of at least the last two years’ W-2s or, if self employed, last two years’ tax returns. If you have started a new job within the last two years, the process gets tricky and may even hinder your ability to acquire a loan unless a special circumstance exists. KGRE can help you navigate any detailed questions about this part of the process.
- The lender will pull your credit score. Credit is a major factor in being approved for a loan and will affect the interest rate. Often, many people are surprised at how easy it is to “fix” their credit by having creditors close out accounts or forgive delinquent payments for logistical oversights. Your realtor and lender can assist in setting you up for success. Even if we find that you can’t buy a house right now because of your credit, we can develop a plan to get you in position within 6-12 months.
Once all of your preliminary information is processed, the lender will pre-approve your loan and provide you with your “purchasing power,” or the amount of which you qualify for.
Obtaining a pre-approval allows you to make offers confidently and attach proof of your ability to secure a loan with any contracts.