How to Prepare for a Mortgage Pre-Approval

Buying your first home or buying a new home can be very stressful. You may be wondering if you can qualify for the type of home you are looking at, what affects your pre-approval, and what you can do to prepare for a mortgage pre-approval. 

Here are six steps that you can take to prepare for the mortgage pre-approval process:

    1. Start planning early
      Planning early for buying a home can make sure you understand exactly what you are signing up for. You can make the necessary adjustments to your finances or your credit to make you more comfortable with the proposed pre-approval, even if it is a year before you are looking to purchase.

    2. Prepare your credit
      Your credit has an important impact on your pre-approval. You should be monitoring your accounts to make sure the payments each month are taken care of. If you start monitoring your credit long before you are looking to move, you can start paying down accounts and putting yourself in the best situation possible.

    3. Check your bank accounts and start saving
      Checking your bank accounts to make sure you have enough money to close on a home is very important. You can’t buy a home without money, so check yours and make sure you are ready to make the jump!

    4. Gather documentation
      Lenders ask for a series of documents to verify things like your income. Keep documents like the past two years of W2’s and tax returns, past six months bank statements, and 30 days worth of paystubs.

    5. Talk to a pro
      Talking to an expert allows you to ask all your questions and get to know exactly what you need to do. They can advise you different routes that you can take and provide you with all the information you need to know.