Are you planning on buying a home this year?
The key to success with buying a home in Orange County starts before you even start looking for a home, it starts when you get pre-approved for a mortgage loan.
Why Get Pre-Approved?
A pre-approval gives you an idea of the home that you can afford, and without a pre-approval your offer will not be taken seriously unless you can provide a pre-approval letter from your bank (lender) stating how much of a mortgage loan you’ve been approved for.
Steps to Getting Pre-Approved
Most pre-approvals last for up to 90 days and you can increase your chances of getting pre-approved by supplying this information to your lender.
- W2’s – Find your W2’s from the last two years
- Pay Stubs – Provide your lender with your paystubs from the last three months
- Tax Returns – Compile your tax returns from the last two years as well as your bank account statements, and statements from other investment or retirement accounts that you have.
- Landlord References – You will also have to supply your lender with references for your current landlord or property Management Company as well.
Know Your Credit Score
Before visiting your lender to get pre-approved for a mortgage loan you should obtain your credit report at least three months in advance just so you can verify that you don’t have any past due or inaccurate items listed on your credit report.
Any past due accounts or items on your credit report that are not correct should be resolved immediately because, your lender will pull a copy of your credit report and past due accounts or inaccurate information can be counted against you.
Pay your bills On Time
Last of all, but most important, before your get pre-approved for a mortgage, you should focus on paying all of your bills on time and paying off any credit cards or bills that you’ve been paying the minimum balances on because, consistent payments will show that you will be a borrower that can be trusted and this will also increase your chances of getting pre-approved as well.
For more information on how to get pre-approved for a mortgage loan contact Fred Sed & Associates today by calling us at (949) 272-0125.