Pre-qualification/Pre-approval

Why obtain pre qualification/pre-approval for a loan?

One of the first and smartest steps to take in the home buying process is to find out how much of a house you can afford, prior to your beginning your house hunt. That way you will know the target price range and have to knowledge of what types of programs and payments to expect!

This preliminary process of review is know as Pre qualification.

To obtain Pre-approval is to say that the money is arranged and in place and is by far a powerful negotiating tool. This means that the process of submitting an application and documentation for approval is complete, and the financial part of the home buying process is over!

The most significant benefit is that the funds are set aside for the approved amount. Now you know that the financing is no longer a concern and the only step left is to find the house!

Here are some of the current documents you'll need to get started:

INCOME

• Current pay stubs
• W-2s or 1099s
• Tax returns, usually for two years for self-employed

ASSETS

• Bank statement
• Investments/brokerage firm statements
• Net worth of business owned (if applicable)

OTHER

• Rental agreements (if applicable)
• Alimony andchild support payments (if applicable)

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