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The Pre-Approval Process Explained by Your Westminster Real Estate Agent


June 7, 2017

Whether you are a first-time homebuyer or have owned a home for years and are ready to buy, it is always good to get familiar with the pre-approval process. As you kick off the steps to buy a new home, pre-approval is your first step. It will help you get on the right path to reach your goals and get into the home you are looking for. Learn more about what it means to get pre-approved, tips for preparing documents for your Westminster real estate agent and how to handle finances leading up to your move.

What does it mean to get pre-approved?

When you are looking to purchase a new home, you will most likely need to get a loan. In order to see what you are able to afford and what a bank is willing to own, you will need to get pre-approved. During the pre-approval process, a lender will do a thorough review of your financial situation to see if you qualify to get a mortgage and what the max amount is that you can purchase.

Preparing documents

Once you have decided you are interested in purchasing a home and are ready to kick off the pre-approval process, they will ask you for a series of documents. Having an organized system to financials such as tax returns will be helpful to quickly go back and grab items. Some items you may be asked for include pay stubs, W2s, bank statements, information for your current living situation to show how you pay your rent or mortgage, employment and residence history and more. It will take some time to gather and make copies of all of these items, so be sure to allot yourself some time during the week to prepare them. Often  times, scanning documents can be time consuming. Depending on the lender, you may have to mail the items in or send them in over the internet. To learn ways to get this information over safely, read PCWorld’s Safely Send Private Information over the Internet.

Handling finances leading up to purchasing a new home

When you have completed the pre-approval process and a lender has given you the terms of your mortgage, you may have your down payment ready to go. Others will need to take some time and save. No matter what your situation is, it is important to maintain the status quo with your finances. You do not want to make any large purchases or make any major changes to your credit that will affect the terms of your pre-approval.
 
As you make the transition to move, make sure you are preparing for your search for Denver real estate. When you are ready, the Giving Back Group can help. Plus, we donate 20 percent of our commission to the charity of your choice to help give back to the causes that matter to you because we know together, we can make a difference. Contact us at 303-881-4881 for us to help you find your next home.