The Pre-Approval Process
The First Step in Buying a Home: Find a Realtor You Trust! Buying a home is a big deal—you don’t want to tackle it alone. The first step in the process is finding a Realtor you trust to guide you every step of the way.
Once you’ve chosen your Realtor, talk with them about how you plan to buy your home. If you’ll need financing, the next step is getting a pre-approval letter from a lender. If you don’t already have a lender, your Realtor can recommend a few trusted options.
Without a pre-approval, sellers may not take your offer seriously—it’s like trying to get into the Chocolate Factory without your golden ticket! Your pre-approval letter is your ticket to homeownership and shows sellers you're serious and financially ready.
Why get pre-approved before house hunting?
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Know How Much Home You Can Afford
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Understand Your Estimated Monthly Payments
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Be Prepared for Closing Costs.
What Lenders Typically Review During Pre-Approval:
1) Proof of Income:
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Past two years of W-2s
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Recent pay stubs showing year-to-date income
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Any additional income sources (plus bank statements)
2) Employment Verification. Lenders may contact your employer to confirm your job status and details. If you're self-employed, expect to provide additional documentation, such as tax returns.
3) Your Credit. Your credit score needs to meet the loan’s requirements. FHA loans may accept scores as low as 580, while conventional loans usually require higher scores.
4) Documents.
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Driver’s license
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Social Security number
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Any other documents requested by your lender
The more organized you are, the smoother the process will go!
Next Steps
Once you’re pre-approved, you’re ready to start touring homes and making offers when you find “the one.” Reaching this stage is a huge milestone, so take a moment to celebrate—you’re well on your way to becoming a homeowner!
