Purchasing Guide - Preapproval

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.