Getting Pre-Qualified is a No-Brainer in a Seller’s Market

July 05, 2016 • Author: Lynne Coverdale, Senior Mortgage Consultant, Salin Bank

It’s only a piece of paper, and that paper has power for only two to three months. Still, if you’re in the market to buy a home, a pre-qualification letter is a crucial initial step in the mortgage process. That piece of paper certifies to everyone concerned – home sellers, real estate agents, and yourself – that, based on your overall financial picture, you can expect to qualify to borrow a particular amount of money towards the purchase of a home.
 
Here at Salin Bank, we view prequalification as a goal-setting exercise, all about you – considering your goals, your needs, your situation, and your options, with us simply “moderating” the discussion. Getting pre-qualified for a mortgage is simple and quick.  That’s because the process is based solely on the information you provide and is not an actual guarantee that the loan will be approved by us as the lender once we’ve completed a more in-depth investigation of:
  • your assets
  • your income
  • your credit history
The main thing prequalification does is give you an idea of how much you can afford to spend on a home.
 
While you’re getting the information you need to pre-qualify, though, it’s a good idea to gather the documents you’ll need to gain approval once you’re ready to apply for mortgage financing:
  •  proof of income (W-2 statements from the last two tax years, and year-to-date income in the form of paystubs)
  • (for the self-employed) business income statements and balance sheets
  • proof of assets (investment account and bank account statements)
  • driver’s license and Social Security number
  • credit reports (you sign an authorization for the lender to pull your credit report)
Note that where there is a co-borrower, that individual will need to provide us with his or her own documentation.
 
“While idly shopping for a home may be pleasant, serious homebuyers need to start the process in a lender’s office, not an open house, writes Michele Lerner in Investopedia.

At Salin Bank, we couldn’t agree more.
 
Meet with your Realtor® with your Salin Bank pre-qualification letter in hand and you will have the confidence of knowing your paperwork is lined up for mortgage approval, and you’ll be proving to yourself as well as to agents and sellers alike that you’re a buyer who means business!    If you don’t have a Realtor®, let your Salin Bank mortgage consultant know and he or she will be glad to recommend a real estate professional.