So you think you want to buy a house. Whether you are looking for a home in Huntington Beach or elsewhere, what should your first step be? Find a qualified lender and get pre approved! I know you have heard this said before and you probably thought it was not necessary; however, if you are serious about buying a home it is. Getting pre-approved not only helps you to fully understand how much you can afford; it makes you more appealing as a qualified buyer when making an offer. This speaks volumes to a seller who may not want to, or cannot afford to, take the time to see if you are a viable buyer. Being pre-approved is not a guarantee for a loan, it is the first step. A pre-approval letter from a lender is generally good for 60 to 90 days, providing you maintain your good credit and work history. What do I need to get pre-approved? You will be asked about your financial history. If you have a co-borrower, the lender will want their information also. Here are some of the things you may be asked to provide.
1. Bank statements with account numbers showing balances over the past 3 months
2. Employment history and references
3. A months worth of pay stubs
4. Your last two W2's
5. If you are self employed or have other income, you will want to provide your last two tax returns.
6. How much debt do you have? You will have to provide credit card numbers and balances as well as any automobiles, recreational vehicles, personal loans etc.
7. How much of a down payment have you saved? This can be taken from your bank statements, but it is good for you to allot how much of your savings you intend to use as a down payment.
8. The lender will need to pull your credit report. This will require your social security number as well as any co borrower that will be on the loan.
9. If you have been renting, it would be good to show the last 12 months of payments
Once you have received a pre-approval letter you are on your way to buying a home. The pre-approval is not a guarantee but rather the first step in the home purchasing process. When you make an offer on a home, you will need to have an appraisal. Depending on the outcome of the appraisal the lender will decide if they want to move forward with you on this loan.
Lastly, remember the Huntington Beach Real Estate market can be very competitive. Therefore, it would be wise to be fully pre-approved with your lender prior to making an offer on a home.
-Gina Williams