Getting pre-approved FIRST before you start looking…then you will know what to look for.

The market in a lot of areas is starting to pick up.  Just recently in the Richmond, VA area homes are being listed and sold with multiple offers and above asking price.  This is an exception not the norm so don’t get all excited.  But the market is picking up and buyers are more active now then they were a year ago.  But are they really buyers? 

Wanting something and then being able to afford it is another thing.  Last week Trump bought the Kluge vineyard at auction.  I would love to have my own wine that I could share with friends, clients and family.  But guess what… I wasn’t Pre- Approved to purchase. 

Ok, this is a little bit extreme but in reality how do you know what to look for if you don;t know what you can afford.  And not everyone is paying cash like Donald Trump.  So the first step to any buying process is to get Pre-Approved by your lender.  A lender you can talk to, touch, visit them in their office and build a relationship with.  Not some internet lender fishing for anyone with a heart beat.  A local, professional lender will guide you in the right direction and provide you with several options of loans depending on YOUR situation.

The following information will help you prepare for Pre-Approval/loan application.  Providing this information to your lender when applying for your mortgage loan will help REDUCE the time required to process it.  in short you will need to provide this sooner or later so why not do it now so your loan will get closed on time!!

All Loan and Pre Approval Applications:

  • 1 full month of consecutive, original pay stubs for all applicants
  • W-2 forms for the past 2 years for each applicant
  • Original bank statements for the past 2 months for all applicants
  • Original 401k, IRA and investment account statements for the most recent quarter
  • If you are renting or have rented in the past 24 months, please provide the name, address and phone number of your landlord

If you are Applying for a VA(Veterans Affairs) Loan:

  • VA Certificate of Eligibility
  • Form DD-214 or for in-service Veterans a statement of service

If you are Self Employed:

  • Year-to-date profit and loss statement and balance sheet
  • Last 2 years tax returns.
  • Copy of your business license for the past 2 years (if applicable)

If you have been Divorced:

  • A complete, signed copy of your divorce decree, including any stipulations or modifications
  • Verification of any child support and/or alimony income for the past 12 months

If you have Declared Bankruptcy in the past 7 years:

  • Copy of Pension/Decree, schedule of creditors and copy of discharge
  • A letter of explanation of why you filed bankruptcy

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