happyYou know that getting pre-approved for a mortgage loan before you even start shopping for a home is the smart move.

When a lender pre-approves you—telling you exactly how much mortgage money it is willing to lend you—you know how expensive a home you can truly afford. You won’t waste time looking at residences that fall outside your price range.

But how do you go about getting pre-approved? Fortunately, the process isn’t overly complicated.

1. Contact a lender that offers loans in the area where the property is located. Ask about interest rates and fees. If you’re comfortable, explain that you’d like to get pre-approved for a mortgage.The lender will ask to run your credit. Give your permission. Your credit scores determine the interest rate for which you might qualify—if you qualify for a mortgage loan at all.

2. You will need to provide financial documents that prove your income. Documents will include your last two paycheck stubs, last two months of bank-account statements, last two W-2 forms and, maybe, copies of your tax returns from the last two years.

3. All this information will then be sent onto the underwriting team, which will study your finances to determine how much of a lending risk you are. Once the underwriting team finishes its study, your lender can tell you exactly how much they are willing to lend you.

4. Finally, your lender will send you a pre-approval letter that will state this amount. Now you’ll know not to look at $300,000 homes if you can only qualify for $200,000 in mortgage money.

We are local Wilmington NC people who love real estate.  Let us help you.  www.cbbaker.com – app.seacoastrealty.com/househunter – kaybakerassociates@ec.rr.com