Pre-Approval from a Lender

10 Easy Steps to Home Ownership

Step #2
When you contact a lender for pre-approval, it is important to have certain information ready. You will need:

  • Current employment information, i.e. where you work, how long you have been employed there and your gross monthly income
  • Asset information: where you bank and the estimated amounts in your checking and savings accounts
  • Liability information: what you owe including car payments, credit cards, student loans, child support, alimony
  • Credit history: any late payments, bankruptcies, liens, or judgments

All of this information can be given to the lender over the phone and based on your information, the lender will give you a monthly payment amount for which you “pre-qualify”. A good lender should be able to provide this information to you immediately and correlate that amount to a purchase price.

The next step is pre-approval. The lender will ask you for your records which substantiate the information you’ve provided in the pre-qualification process. These records include pay stubs, bank statements, tax returns, etc. Usually this step is done face to face with the lender but can be accomplished through emails or faxes. Once youve completed this step, the lender will provide you with a pre-approval letter. This letter is important to have on hand when you are ready to write the offer on the home of your choice. But first, the agent needs to meet with you to identify your needs and wants in your home purchase.

Step #3: Identifying Your Needs and Wants….