Preapproval is one of the first steps you should take during your homebuying journey. But what exactly does it mean to get preapproved? It means that your mortgage lender already…
- Ran your credit report
- Calculated your DTI
- Has your income, asset, and liability (debt) information
- Determined how much they can approve for your home loan
What are the benefits?
How to Get Preapproved
- Meet with a mortgage loan officer to discuss the home loan options available to you.
- Complete a mortgage loan application.
- Provide your loan officer with the following:
- Two months of pay stubs
- Two months of bank statements (checking, savings, money market, etc.)
- Proof of your current rent/mortgage payment
- Two years of W2s (if not self-employed)
- Last 2 years of W4 (if self-employed)
- The loan officer will run your credit and calculate your DTI.
- They will determine how much they can approve for your home loan and provide you with a letter of preapproval.
- Let the hunt for your new home begin!