So you are ready to buy a house but you aren’t sure where to start. Are you currently thinking about buying a house or in the market to buy a house? Buying a house is the biggest purchase of anyone’s life. The decision to buy a house is the biggest decision anyone will ever make. It is a commitment to 30 years of payments on average. And also a commitment to living in the same place at least until you decide to purchase another home.
You do need a prequalification letter to begin shopping for a house. The market is currently very competitive. In order to work with a real estate agent and have them take you around to show you houses, they will most likely require that you have a preapproval letter in hand. The preapproval letter is a letter from the bank saying that they have ran your credit, reviewed your finances, and given their blessing up to a certain dollar amount. Banks that issue prequalification letters generally have done their due diligence and will not issue them if they have any doubts that you would not be approved for a mortgage loan.
The preapproval letter is your golden ticket to begin home shopping. The current market is highly competitive. Even if you have a preapproval letter in hand, many sellers are bombarded by potential buyers and multiple offers. The sellers and the seller’s agent will want to see that you are preapproved for a loan before they will even accept your offer.
When you are shopping for a house and you find one that you like, your agent will draft up an offer letter for you. The sellers will want to know that you are preapproved for a loan. Once you make an offer and it is accepted, the process begins.
So you want to buy a house and you want to know what you need to get a loan preapproval from a bank. The first step is to gather all of your documents. The basic documents that a lender or bank will want to see are three months of paycheck stubs, W2 Income statements for the last two years, the last three years of income tax returns, and 2 months of bank statements. They will pull your credit and see how much debt you have. They will then see how much house you can afford using the lenders debt-to-income ratio requirements. Once they have ran your credit and determined how much of a house payment you would qualify for, they will issue you a prequalification letter.
Most lenders and banks will give you a no-obligation consultation and preapproval letter. It is a very simple process and most lenders can provide you a letter in less than a week. Consult a qualified, licensed mortgage loan officer today to get prequalified.
Talk to a Mortgage Loan Specialist or Mortgage Broker to see how you can qualify for a home loan today. Contact Arlene Disessa at 530.813.0661 or email her at firstname.lastname@example.org. Arlene Disessa is an Editor in Chief of California-loans.com, a mortgage and real estate information center. Contact Us today at 530.813.0661 to get prequalified. We are available 7 days a week to answer your questions.