Getting pre-approved is better than getting pre-qualified when buying a home, but there are certain things your lender will need from you in order to get you pre-approved.
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What is a pre-approval? Why is it crucial to the home buying process?
A pre-approval is a stronger commitment from a lender than a pre-qualification. Getting pre-approved can give you an edge when there are multiple offers on a home. A pre-qualification does not pull a credit report, and therefore is less reliable. Your offer may be rejected if you only offer this.
Here’s a list of what you might be asked for to get pre-approved for a home loan:
1. The social security numbers of both you and your spouse if you’re both applying for the loan together. This allows the lender to run an accurate credit check on you.
2. Copies of your checking and savings account statements from the last six months.
3. Documentation of other assets you might have, like stocks or bonds.
4. Recent pay stubs showing your earnings from your job and the contact information of someone who can confirm that you work there.
5. A list of all credit card accounts with current balances.
6. Your last two years of income tax returns.
Each lender might have other requirements for your pre-approval so if you have any questions about this topic, don’t hesitate to give us a call or send us an email. We’d be happy to help you.