How to Prepare for the Financing Process 

THE BEST ADVICE... GET PRE-APPROVED

Real estate agents and lenders highly recommend that you, as a home buyer, get pre-approved with a lender before selecting a home to purchase. This way, you will have the best information about the right price range for your pocketbook. Most importantly, your Seller will have the confidence to accept your offer and it will give you the upper-hand if there are multiple offers.

9 GREAT REASONS TO GET PRE-APPROVED

1. Pre-approval determines which loan program best fits your needs.
2. You won't waste time considering homes you cannot afford.
3. You are ready to write and present an offer on the home you really want when you find it.
4. Your buyer specialist can give the seller a pre-approval letter for you.
5. In today's market, with multiple offers on properties, pre-approval puts you in a much better negotiating position.
6. You will know the amount needed for down payment and closing costs.
7. If you are a first-time buyer, you may be able to qualify for a special first-time buyer program that may allow you to afford more home for your money.
8. If you feel you would like and can afford a higher mortgage payment, other options may be available.
9. Peace of mind.

Loan Application Checklist 

When it comes to getting pre-approved for your loan, your lender will ask you for the following items. To expedite the process, have the following information ready when you apply:

Borrower Information:

• Full name
• Marital status
• Age
• Address
• Previous address (if less than 2 years at current address)
• Landlord (past 2 years)
• Phone number
• Place of employment (past 24 months)
• Length of employment
• Previous employer (if less than 2 years at current employer)
• Social Security number
• Name and age of dependents

Income:

• Base pay (pay stubs for 1 month)
• Overtime
• Bonuses
• Real estate income
• Interest income
• Alimony/child support (Copy of Divorce Decree) (Need not be disclosed, if you choose.)
• Other regular income (Social Security, retirement accounts, etc.)
• Last two years' W-2s and federal tax returns

Assets:

• Names and addresses for these accounts will be required along with account numbers
• Cash (savings, checking, money market)
• Securities (stock, mutual funds)
• Value of real estate
• Proceeds from sale of current home
• Cash value of life insurance
• Automobiles
• Personal property

Liabilities:
For the following items you will need the total due, monthly payments, and amount of payments remaining. Names, addresses, and account numbers will also be required.

• Automobile loan
• Bank loan
• Real estate mortgage
• Personal loan
• Notes payable
• Credit cards
• Alimony/child support
• Outstanding judgments
• Miscellaneous debt
• Bankruptcy and discharge of bankruptcy