Ready to apply for a home loan? Getting pre-approved for a mortgage is the first step in the home buying process. But where to begin?
Document requirements vary among lenders. Generally, though, you’ll be asked to complete an application and provide your lender with the last two years of signed tax returns, two month’s worth of bank account statements and pay stubs from the last month. Armed with your financial information and your credit report, your lender will determine how much you can borrow.
Once you’ve been pre-approved, it’s time to go house shopping! It’s important to remember that your lender will not only have to approve you, but the house you want to buy. To complete your purchase, your home will have to appraise at or above the asking price. Your lender also must find the property in satisfactory condition.