The real estate market may be predicted to cool in 2019, but right now the number of buyers looking to buy homes is still out pacing the number of homes available. With inventory low, that means there will be fierce competition among buyers. So, if you are looking to purchase a home, you will need to do something to stand out to sellers. One way to show that you are serious about buying your dream home is to get pre-approved for a mortgage before starting your search. This will give you the added bonus of knowing if a home is within reach for you financially before you get too attached to the idea of purchasing it. Knowing how much you are approved for will save you from the disappointment of falling in love with a home you can’t afford.
One of the many advantages of working with a Local Realtor is that many have relationships with lenders who will be able to help you with this process. Once you have chosen a lender, you will need to fill out their loan application and provide them with vital information regarding your credit, debt, work history, down payment and residential history. 10 Best Mortgage Rates of 2019
Before you start your home search, get all your ducks in a row so that you can apply for a pre-approval. The lender will need the following documents:
- Current pay stubs
- W-2s from the last two years
- Last two federal income tax returns
- Bank statements (from all accounts in your name)
- Credit report
- Driver’s license or passport
If you are self-employed, it might be a little more complicated. You will need to show some other information that backs the fact that you have consistent income to pay a mortgage. The other documents might be:
- Business bank statements
- Business license
- Company tax returns
Getting pre-approved not only shows sellers you are serious, but also speeds up the process of completing the purchase once your offer has been accepted.
Many people overestimate the down payment and credit score needed to qualify for a mortgage. If you are ready to buy, you may find yourself pleasantly surprised at what you can afford! Free Credit Reports
If you’re thinking about selling or buying a home in the New River Valley area, contact professional, experienced Realtor Desi Sowers and let her assist you with all your real estate needs. Give her a call today at 540-320-1328!