A pre-approval letter is the amount of money a lender is willing to lend to a potential buyer. Before most banks and mortgage lenders lend out home loans they require you to get a preapproval letter. Most Better Homes and Gardens Real Estate Executive Partners agents advise their buyer clients to get a preapproval letter before they start showing houses in Augusta. The letter lets the buyer know how much the lender will lend and how much they can comfortably afford. Keep in mind that agents and sellers will take a buyer that already has a preapproval letter more seriously.
A few months prior to starting your dream home hunt, start shopping around for a lender. 2 or 3 lenders is suffice. Most lenders have the same loan packaging and pricing, you may just feel more comfortable with one lender over the other.
What documents are needed to receive a preapproval letter from your lender?
Proof of income
The bank or mortgage lender will want to verify the amount that you put on the mortgage application. Your lender will tell you what they require you to bring, but here is a list of items they’re most likely going to ask you to bring:
- 2 most recent pay stubs
- 2 most recent W-2 statements
- 2 most recent bank statements
- Make sure you bring invoices and receipts so the lender can verify your list of assets
Lenders want to know all your assets. This list should include things like your car, jewelry, stocks, etc. Bring official documents that verify these items such as a car deed, receipts, and anything else that can verify the appraised value of these items.
Lenders also want to view your official bank statement from the past 3-6 months to make sure you have enough money to afford the down payment and the monthly mortgage payments.
Lenders will also pull your credit history to see if you can be pre approved for a home loan. When meeting with your lender, you may want to bring your own copy of your credit history just incase there are any discrepancies.
Hopefully these tips prove to be beneficial for you as a first time home buyer in Augusta, GA. For any other information click here to contact a Better Homes and Garden Real Estate Executive Partner agent today!