When buying a home it is extremely important to define your budget. What does this mean? Not only getting a pre approval, but having an understanding of your monthly payment, down payment and estimated cash to close. Ask your lender to send you a loan worksheet or a loan estimate with these numbers. This is an estimate and the numbers may change, but it will give you something to work with. Having these number will help you make better decisions.
When getting pre approved the lender will ask you for your most recent pay stubs, most recent tax returns and a bank statement. If you receive child support you will also have to provide proof. Sending all these documents will help you be in a better position to get your loan fully approved. Once you send all the documents, the lender will issue you a pre approval letter. Please know that once you get an offer accepted the lender will ask for more documents in order to get your loan fully approved.
Questions to ask your lender:
- Can I get a loan worksheet or loan estimate with my pre approval?
- What type of loan program works best for me?
- Is there anything that I need to improve in order to get a better interest rate? More down payment? Improve my credit score?
- Do I qualify for down payment assistance? If so, what are the terms? When do I have to pay it off? Is this a monthly payment assistance program?
There are so many steps involved when buying a home that having a team supporting you and making sure everything is going smoothly is crucial. Communication is key and having an agent that knows the process will help.
Who you work with matters. A lender that is committed to help you will guide you through the process. When Realtor and lender have a good business relationship it makes the process so much easier. Look for referrals and reviews when choosing your team.
We are always here ready to help and committed to give you all the resources that you need!