Step 2: Get Preapproved for a Mortgage

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So, You’ve picked ME as your Realtor…Yey!

You've chosen me as your Realtor – great choice! Now, let's get you ready to buy a home by tackling a few key steps:

First up, paperwork! Don't stress about it, though. I've got the perfect tool for us – dotloop. It's an online workspace that streamlines the entire real estate transaction process. With dotloop, we can effortlessly edit, sign, and share documents digitally, saving time and keeping everything organized. You'll have access to all necessary forms on your phone, tablet, or computer.

Next, pre-approval is crucial. Sellers prefer offers from pre-approved buyers for financial reliability. Understanding your budget, monthly payments, interest rates, and other financial details is essential. A good mortgage lender will make the process smooth and help you secure the best deal.

Gathering paperwork for pre-approval is straightforward, including:

  • A completed application. The lender will give this to you directly.
  • The two most recent months (or a quarterly statement) for any assets listed on the application. Generally, checking, savings, 401k, mutual funds, individual stock accounts, IRAs, etc.
  • Your most recent paystub
  • Past two years of W2 forms
  • Past two years of Federal Tax Returns
  • Past two years of Corporate Tax Returns (if self-employed and you own over 25% of the company)

Once submitted, you'll receive a pre-approval letter within days. Knowing your closing costs, estimated at around 2.5% of the property price, and getting a Loan Estimate from your lender are vital steps.

Shopping around for loans is highly recommended. Varying fees and rates make comparing lenders crucial.  This approach ensures you secure the best loan terms for your new home.