(Closed) Morgage Pre-approval

posted 6 years ago in Home
Post # 3
764 posts
Busy bee
  • Wedding: September 2011

For preapproval alone, you don’t need anything but your personal info, income, and employment info.

Once preapproved, then you will need to start digging up the paperwork.

Post # 4
1544 posts
Bumble bee
  • Wedding: June 2013

you generally cant make an offer without preapproval.

Preapproval theyll just ask about the loans and CC in your name, time at current job and salary, and ofourse dig up your credit report.

Then they’ll give you an amount that they are willing to give you. (if anything changes then the amount could too)

After the offer is approved is when they get all the final info and you sign your life away on a a bunch of final loan paperwork.

Post # 5
1544 posts
Bumble bee
  • Wedding: June 2013

actually our realtor wouldn’t even show us a house without being preapproved. (we ended up finding another tho)

Post # 6
2616 posts
Sugar bee
  • Wedding: October 2010

You *can*, technically make an offer without preapproval, but most buyers/realtors will not take you seriously if you don’t. Why would a realtor agree to put time into your search without knowing that you at least prequalify for some kind of loan and why would a seller take your offer seriously among others who ARE prequalified if there’s a chance you can’t even afford the house? 

You don’t need much paperwork for it–pretty much employment info/income, savings, and debt. 

It’s AFTER you want an actual loan that you submit everything known to mankind. 

Post # 7
1642 posts
Bumble bee
  • Wedding: October 2012

@everalwaysrealtrue:  Pre-approval just takes finding a bank/lender/broker and providing them with pretty basic info. Applying for the mortgage is the REAL bear. That’s when they dig up your entire paper trail.

Post # 8
100 posts
Blushing bee
  • Wedding: June 2011

Our mortgage broker had us get all of the paperwork together to get pre-approved.  We needed bank statements for the past 2 months, 2 paycheck stubs, any other account statements (like 401(k)s, any stocks or bonds), and we had to fill out a bunch of paperwork.  He had us do this up front so that he knew that we would get the loan in the end and that there were no surprises.  After we were under contract, nothing else was needed, we just had to sign a lot more paperwork.  But this does only work if you go under contract within one or two months of the preapproval.  If it had taken any longer we would have had to submit updated statements.

Post # 9
7312 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

Pre-approval requires your personal info, copies of recent pay stubs, copies of 2-3 years of W2s, copies of 2-3 years of tax returns, copies of 2-3 months of bank and any other asset statements, and copies of your drivers licenses. The lender will pull your credit report, run the numbers, and tell you what you could theoretically purchase and what your ballpark interest rate would be, based on that day’s rates.

Note: make sure you get pre-approved by at least 2 lenders. When it comes time actually get the mortgage you can bid them against each other to get a better interest rate, better loan terms, lower points, and lower closing fees.

Note: pre-approval is different from pre-qualified. “Pre-qualified” means absolutely nothing in real terms because it is based solely off of what you tell the lender, they don’t verify anything, and they don’t pull your credit. Only being pre-qualified will hurt any offers you make, and many agents refuse to take clients on showings if they are only pre-qualified because pre-qual is so meaningless.

Whatever number they would pre-approve you for is NOT the number you can actually afford, so don’t trust their number unless you are okay with eating Ramen every day and never traveling/going to a concert/etc. Before you go for pre-approval, ask yourself how much you are actually comfortable paying each month. This should be an amount that allows you to save money for the future and pay all of your current bills.  Once you have that number, subtract 70 bucks for your monthly homeowners insurance amount, subtract another 300ish for property taxes, subtract another $100ish for HOA fees (if buying into an HOA community), and what you will have left is how much you can actually afford for principal and interest on your loan. Then you can use an online calculator to see how much that monthly principal and interest amount, along with your downpayment, will actually allow you to afford. For estimation purposes, I would use rates from 3.875-4.125% to see a range and figure out how your interest rate affects what you can really afford.

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