A Homeowner’s Guide to Being Pre-Approved for a Mortgage
House and Home

A Homeowner’s Guide to Being Pre-Approved for a Mortgage

A Homeowner’s Guide to Being Pre-Approved for a Mortgage

I’ve got to tell y’all that the first stages of owning a home are complicated. I won’t lie—it took a while to understand in my first go around, but I eventually learned the process of buying a home and getting pre-mortgage approval. So, I want to share my expertise with you—here’s a homeowner’s guide to being pre-approved for a mortgage.

Have Your Assets Ready

The first thing I had to figure out how to do was organize my assets. Your assets consist of bank statements proving you can afford a down payment. For me, the down payment was a small percentage of the selling price.

Bring In Proof of Income

The other thing I needed to back up my assets as proof of income. Pulling together a proof of income isn’t hard, so long as you have the past year’s W-2 on hand when you visit the home loan servicers.

Ensure You Have Stable Credit

My credit determined the amount I could take out as a mortgage. Banks and lenders consider a home buyer’s credit score one of the most important factors for pre-approval. If your credit isn’t where you want it, lenders can offer advice on how to improve it.

However, there’s something I think is crucial to keep in mind as y’all tackle this process: credit scores are individual, meaning joint accounts contribute to personal credit scores, but not a shared one.

Bring Other Miscellaneous Documents

Did I mention there are other documents to bring? One essential tip for future homeowners is to obtain records, especially the miscellaneous ones, and bring them with you to get pre-approved for a mortgage. The other documents my lender needed were simple: a driver’s license and social security number card with a signature.

It’s essential to bring the extra items with you if the lender requests them. They may also ask for additional documents according to their standards, meaning you may need to return later with more paperwork.

Verify You Have a Stable Job

Y’all remember when I said to bring in proof of income? It’s the same for verifying a stable job, meaning you work in a full-time hourly position. You can prove your work with paystubs, just as I did when purchasing my first home. This process may look different for a self-employed homeowner.

These things are all important. As you implement smart house-hunting tips and prepare for the next stage of your life, consider how getting pre-approved for a mortgage could make life easier. Contact a lender to learn more about what the financial side of your home-buying process will look like.

Follow these steps to being pre-approved for a mortgage with the lender of your choice. With these suggestions, you’re prepared to be a homeowner and buy the home of your dreams.

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