If you are buying a home with cash, all you need are proof of funds to demonstrate that you are a willing and able buyer. Such proof can come from a bank statement of the full price of the house.
Otherwise, you are likely going to need funding from a lender. To get started, you'll need to provide proof of your income, verification of employment, proof of assets, your credit history and identification. You'll need W-2 statements, pay stubs, bank statements, your license and social security cards. A lender will then provide a loan estimate, which will show you how much you can afford to buy a home. This is why preapproval is so critical before you begin looking at homes. You do not want to waste your time and create disappointment if you're looking at homes you cannot afford.
While getting an initial preapproval from a lender will make your credit score dip, other preapprovals from other lenders in the same time period will not. Feel free to shop around once you've begun the process.
A preapproval will last 60 - 90 days. You will not likely lock in your interest rate until you've selected a home and apply for the loan. If you are still looking for your home after the preapproval expires, simply renew your preapproval to make sure it hasn't change drastically.
Once you have your preapproval, it is time to find the right real estate broker to assist you in seeing homes, selecting your home and making a winning offer, and getting to closing smoothly and successfully. Consider scheduling a call with John P Sharp today to discuss your real estate goals and how they align with our real estate services.
Ready to start the home-buying process? Schedule an initial consultation with John P. Sharp today. Let's discuss your real estate goals and how we can help you achieve them.
If you need assistance in prequalification or you have questions about the lending process, I recommend Steve McNulty from Movement Mortgage. He's friendly, knowledgeable, and follows through. I highly recommend him!
Stay on top of your credit. The time between preapproval and applying for your loan is one in which you want to be very careful with your credit. If your credit score just meets the requirements for your loan, any big purchases or failed payments made during the preapproval period could ruin your ability to qualify when you make your offer on the home you want. Be conscious of this during the home-buying process.
Need help getting your credit score up? Reach out to a credit counseling nonprofit company in your area. Their purpose is to evaluate your situation, listen to your financial goals, and help you achieve them. Proceed on through the purchasing guide.
John P. Sharp, Premium Real Estate Broker with Skyline Properties, Inc.
19515 North Creek Parkway, STE 214, Bothell, Washington 98011, United States
Call us today at 425-230-2525
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Premium Real Estate Broker with Skyline Properties, Inc.
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