This step begins before you find the perfect home. . At this stage you are looking to get pre-approved for a loan. Having your financing in place and ready
to go puts you in a stronger position to make an offer on a home. Sellers are more apt to negotiate with someone who already has a mortgage approval in hand. It shows the seller know they are working with a serious buyer. A pre-approved buyer is also one step closer to closing quickly - another major consideration for a motivated seller. Obtaining a pre-approved mortgage is essential in a “sellers’ market” or where supply is limited.

Pre-approval uses basic information about your assets, income, debt as well as electronic credit reporting. It is a true loan commitment, indicating the
total financing amount available to you. Your lender can help you through the pre-approval process, at no charge in most cases. If you don’t have a lender in
mind I can make several recommendations for you.

Pre-qualification is not the same as pre-approved. It is simply an estimate of what you can afford. To pre-qualify a lender collects basic information to
calculate an estimated mortgage amount. There is no loan commitment. When it comes to the offer stage you want to be pre-approved, not
pre-qualified.

Documentation to have ready:

• W-2 forms for the last two years
• Federal tax returns for the last two years
• Last two months’ bank statements
• Long-term debt information (credit cards, child support, auto loans,
  installment debt, etc.)