The majority of people buy their home in the North Metro Denver Area using a loan and so getting a loan is an incredibly important part of the home buying process. Getting pre-approved for a loan is the first step in the process and I highly recommend doing this before you start your home search. Buying a home is a multifaceted process with many moving parts. I always strive to be there and help my clients from the first steps of buying a home all the way to closing and anything they need in the future. I want to be able to walk my clients through this process with as few bumps in the road as possible. Here in this article, I will inform you of the value of pre-approval and the process of getting a loan.
Pre-approval is key in today’s marketplace. With limited inventory, numerous buyers, and low interest rates, having a pre-approval in hand will help you present an offer in a very timely manner to be competitive with other offers. A qualified Realtor like myself will inform their clients that being pre-approved is one of the first steps in looking to purchase a home.
What Is A Mortgage Pre-Approval?
Let’s start at the beginning and go over what a mortgage pre-approval is and what this means for you and your family. A mortgage pre-approval isn’t a promise that you’ll get a loan for the home you are wanting to purchase. This simply means a loan officer has looked at your finances, debt, assets, and credit history, obtained approval from one of the major lenders, and determined how much money they are willing to let you borrow. This will also give you your interest rate and an estimate of the amount of your monthly mortgage payment would be. Even though a pre-approval doesn’t guarantee you’ll get a mortgage, it has many advantages.
How Does a Pre-approval Help?
While you might feel like this is an unnecessary step in the process of buying a home here are some examples as to why I recommend not skipping this step! It gives you confidence as a buyer in your search of homes knowing where your budget should be and what you feel confident paying a monthly amount for. Also, it helps expedite the closing process due to your information already being in the lender’s system.
Finally, having a pre-approval shows you have credibility as a buyer when making an offer to a seller. Keep in mind that pre-approvals do have an expiration date. So if you don’t make the loan happen before that time frame you will have to start this process over. Pre-approvals are good anywhere from 60 to 90 days depending on the lender. Be sure to ask so you know this information! The Value Of Pre Approval And The Process Of Getting A Loan has many moving parts and knowing all of these will help you through this process.
In addition, a personal call to the listing agent from a lender on behalf of the buyers is a great way to reassure a seller’s agent that the buyers are strong candidates for the purchase. I have had a great relationship with Nathan Beauchamp of Nathan Mortgage. He is very knowledgeable and works hard to explain the many loan options that exist and aids a client in selecting the program that best fits their needs. He has a streamlined online process that makes the loan process simple and direct.
What Do You Need to Get a Loan?
What information will your lender ask of you and your spouse? Every lender is a bit different in what they require, so make sure to ask your specific lender or mortgage broker what they require. This list covers most of what they will require from you which means you can be prepared and not have to get back to them with additional information.
- Driver’s License
- Social Security card or number
- If you aren’t a U.S citizen a copy of your green card
- Credit History – Check your credit score
- Employment verification – 2 Years Minimum
- Recent pay stubs covering the last 30 days
- W-2 forms from the last two years
- Proof of any additional income
- Last two years of personal federal income tax returns (Sometimes optional)
- 60 Days of Bank statements for proof you can cover down payments and closing costs
- Last 60 Days of Any statements for 401K, IRA, stock accounts, or mutual funds. Sometimes your assets can be used to supplement your income.
Final Thoughts How Can I Help?
If you want more information on the Value Of Pre Approval And The Process Of Getting A Loan to get in touch. I work with some amazing mortgage brokers and lenders and would be happy to connect you. Always I want my clients to have the most up to date information to help them through this time of buying or selling their North Metro Denver Area home. Always I am striving to provide my clients with interesting and up-to-date information so they can make informed decisions. If you think that my expertise and positive attitude might be of service to you don’t hesitate to reach out and contact me!
Would you like more information on the North Metro Denver area or the real estate market specifically? If so click here to download my current market report on the area or visit this link – http://christinakernexpert.com/market-report-newsletter/
Residential Home Specialist & Global Luxury Specialist
Coldwell Banker Residential Brokerage North Metro Office