A true mortgage approval that holds any weight is one that has been issued by an underwriter who has had an opportunity to review all of the necessary documents.
With a constant stream of new lending guidelines and volatile mortgage rates, very few real estate agents will show new homes to a First-Time Home Buyer without at least a pre-approval letter.
A Pre-Approval Letter will help you in three ways:
- It lets you know how much mortgage you can qualify for
- It gives you an estimate of what your total housing payment would be
- Submitting a strong “Pre-Approval” letter with a purchase offer will give the seller more confidence about your ability to complete your end of the agreement
It’s obviously a good idea to get your paperwork prepared ahead of time so that the pre-approval process is as thorough as possible. In order to get a pre-approval letter, you’ll start by filling out a loan application and submitting a few documents for the loan officer and underwriter to review.
Common Loan Pre-Approval Documents:
- Last 2 year W2s and Tax Returns
- 2 most recent Pay Stubs
- 2 most recent Bank Statements, 401(K), Liquid Assets, Investment Accounts
- Lease Agreements (If own other Rental Properties)
- Mortgage Payment Coupons (If own other Real Estate)
Not all lenders have control over the loans they approve or decline. At Mortgage Capital Partners we are a direct lender and use local appraisers in your area. Our internal underwriting system will help you to bypass the red tape of big banks, which ensures you remain in control of your home purchase and avoid delays or a potential decline.
- Mortgage Capital Partners
- (626) 636-5061