Getting Pre-Approved for a Mortgage
Unless you're able to pay cash, the first step toward owning your new home in Alexandria, Virginia is to become pre-approved for a mortgage loan. Note that this is different from becoming pre-qualified.
To become pre-qualified, you simply talk with a mortgage lender and tell them about your assets, liabilities, and income. They don't verify anything. Based on what you've said, they give you a guestimate of how much you can borrow and at what rate of interest.
To become pre-approved, you meet with the lender and present documents to verify your financial status. They'll also order a copy of your credit report. Based on this information, they'll tell you what loan programs you qualify for, how much they will lend you, and the interest rate and fees they'll charge.
They'll also give you a pre-approval letter. And in today's housing market, this is an important document.
Because so many people are having a hard time obtaining mortgage loans, Alexandria home sellers are skeptical of offers from buyers who don't have a pre-approval letter. Naturally, they don't want to remove their houses from the market only to learn weeks later that their buyer can't close on the purchase.
Most sellers, including the banks, won't even consider an offer unless it is accompanied by a pre-approval letter.
The other advantage to obtaining a pre-approval is in knowing exactly how much you can spend as you begin your home search. It's frustrating and disappointing to fall in love with a home that's just above your price range. The pre-approval letter will keep you looking where you can buy.
Make it easy on yourself…
To expedite your approval and prevent the need for an immediate second visit to your mortgage lender, take these items with you on the first visit:
- Your present mortgage or rental information.
- Two-year history of employment and verification of all income sources.
- If self-employed, copies of past two years' Federal Income Tax Returns.
- Information about your checking, savings and credit card accounts.
- Name, account number and outstanding balance of each of your debts.
- Application deposits.
- Information about any assets, including assets that will be used as funds to close.
- Information on child-support payments – incoming or outgoing.
- Copy of your Social Security card and photo ID.
- If VA - Certificate of Eligibility or DD214
Choose your lender wisely…
Many of my buyer clients use lenders who have been referred to them by friends and family. And that's good. Past performance is a good indication that you'll get the service you want and deserve.
However, if you don't know who to
call, I'll be happy to give you a list of mortgage lenders here in Alexandria
who have served my clients well in the past. Just fill out the form below and we'll get started.
And of course, if you're looking for a home in Alexandria, Virginia, do get in touch. I'll listen to your wants and needs and help you find the home that exactly fits.
Thanks for visiting me at www.susanmovesyou.com