When Buying a Property many people ask, what is the first step in the process? The answer is… Get pre-qualified for a mortgage.
Why? Let us explain…
Getting “Pre-qualified” is a simple process that will put you in a much better position to make your next real estate purchase. Getting qualified for your loan will give you more negotiating power and give you the confidence you need to move forward since all you payment terms will be outlined in advance.
What Does It Take To Get Pre-Qualified?
Not as much as you might think…
With a short phone conversation, you can briefly review information about your employment, debts, income, and assets.
The lender can also look at your credit profile, discuss your down payment options, and cover the different loan programs that can work for you.
Once you get pre-qualified, your loan officer will give you what’s called a Pre-Qualification Letter.
This letter states that, as your loan officer, they have reviewed your finances and can get you qualified for a loan up to a certain dollar amount.
The whole process is simple and to the point, the paperwork is kept to a minimum, and generally, your loan officer can provide most clients with a “Pre Qual letter” within about 15 minutes.
Once pre-qualified then you can go out and start shopping for a home or condo.
Why Does This Benefit You?
Once you and you decide on “the one”, being pre-qualified for your mortgage will do a couple of things.
1) First, it lets you know in advance how much you can offer.
2) Second, your real estate agent (our team) will submit your mortgage pre-qualification letter with your offer so that the seller knows that a lender has reviewed your situation and that you can afford the home.
It puts you in the best possible position and gives you the most negotiating power when buying a house, so make sure you get qualified in advance.
What Documentation Will You Need?
The exact documentation you may be requested to provide depends on your qualifications and the type of loan you would like.
We recommend having the following documentation ready because it is some of the most commonly requested items.
Your mortgage lender will let you know what is needed after speaking with you.
Below is a list of common documentation that may be requested from you:
– Paycheck stubs for the last a 30-day period for each borrower
– Most recent two years’ W-2s and/or 1099s for each borrower
– Most recent two years’ Federal tax returns for each borrower (all schedules)
– Last two months of most current and consecutive bank/investment/retirement statements for all accounts
– Complete divorce decree(s) with all attachments (if applicable)
– Complete bankruptcy papers with all schedules and discharge papers for bankruptcies within the last seven years (if applicable)
If you are a first time home buyer check out our post on “5 Tips for Getting Ready to Buy Your First Home”
Perhaps you are interested in other San Diego real estate options? Whatever type of home for sale in San Diego or elsewhere, we can help you find it!
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To your success,
Oliver, Sam, Spencer
Your friends and local Real Estate Pros
Big Block Realty – CA BRE #01885775