Things You Need to get Pre-Approved

by Christina Yang 11/10/2019

In your quest to buy a home, you might check out properties online or looking up houses around your neighborhood up for sale. These are all steps you must first make to attain your desire of becoming a homeowner. Before you go into your search proper, there is something you need to do; it’s called getting pre-approved for a mortgage. 

A mortgage pre-approval involves lenders going through your financial records to determine how creditworthy you are. It’s a process that allows the lender to go through your financial records to determine if you are loan qualified and how much you are eligible to borrow. Being qualified for a mortgage differs from being pre-approved – the latter holds more value to a lender. 

The purpose of getting pre-approved is to convince the lender that if granted the loan, you would be able to payback. Another reason lender asks for pre-approval is to be clear on all your financial situations. The pre-approval process involves lenders going through your financial records either on your request or at their discretion.  The following are things and documents you would be pre-approved about before applying for a mortgage loan.

Proof of Income

The documents showing your income statement is required to validate how much you earn on the average annually. It’s an essential document for pre-approval and underwriting. It involves you presenting your W-2 statements for the past two years, your most recent pay stubs (at least two) and any other additional source of income or bonuses. 

Proof of Employment

Aside from going through your pay stubs, a lender will also want to confirm your employment status from your employer and verify how much you earn. If the job you are working in is a new one, a lender might contact your previous employer. All these are procedures the lender undertakes to ensure they are borrowing to a financially stable individual. Self-employed people would need to provide more critical paperwork about their business. 

Credit Information

A lender would want to measure your debt-to-income ratio before granting you a loan. This procedure involves ascertaining if you are currently repaying any debt like a car loan, student loan or any other loan form. Providing documents relating to this information is vital.

Social Security Number

Lenders need your social security number to verify your identity, to attain your credit reports and also to request your tax returns from IRS. The information is made available through your social security cards, tax documents and all other documents showing your SSN.

Bank Statements

Your bank statement is required to determine if you have enough cash or investments needed to make a down payment, conclude closing cost and still maintain a cash reserve. Your bank statement is one of the essential documents nearly all lenders will request to see to ensure you have enough funds. 

The pre-approval process is the first place a serious homebuyer begins the home application process. Speak to a financial consultant or your real estate agent to help you secure one.

About the Author
Author

Christina Yang

Christina Yang was born in America and raised in Taiwan during her younger years. Christina has been living in  Sonoma County for the past 20 years, working in the Service Industry, mainly  in restaurants. Customer Service has been a leading factor in her success with the consumer. She understands the emotions involved in Buying & Selling homes. Christina prides herself on using good listening & communications skills. She is fluent in Mandarin & English.  Christina considers her clients as family and truly has their best interest at heart. Christina resides in the city of Santa Rosa with her husband and two children.  

Thinking of Buying or Selling a home?  With Christina you have a friend and a trusted adviser in Real Estate. 

Christina 是位专业的房地产经纪人,能说一口流利的普通话和英语。她可以提供给您最迅速与专业的地产服务。她用心倾听客户的需要,为您寻找您理想的居家环境。秉持诚信为人处事的原则,她以客人的利益为优先。无论是自住还是投资,买房或卖房,Christina 都能一路提供您专业的服务。服务范围包括:各类住宅、房屋买卖、投资,免费咨询,房屋估价。

Christina 已经在湾区居住了20年,这里拥有全美最怡人的气候,也是美国房产最受欢迎的地区之一。在这之前她和她的家人一起生活在台湾。所以她深深的理解东西方文化之间的差异,也因此和客戶的交流可以更加流畅和易懂。她有强大的国际视野,而这一切都来自於这些年广泛的全球业务。同时她也在全球各地旅行,丰富的阅历为她的全球业务提供了更多的支援。
Christina 热爱她的工作,能够实现客人的梦想,就是她最大的梦想!

如果您想与 Christina 联络,请打707-591-5496或发电邮。如果您在大陆,请发电邮或是微信 (帳號:CHRISTINA_K_YANG),請留下您的电话号码,Christina 会盡快打電話給您,直接与您通话。