Getting pre-approved

It is a good idea to get pre-approved for a mortgage from an accredited lender before you even begin looking at properties. That doesn't mean it is time to shop around for the best rate, since getting pre-approved with a lender doesn't mean you are locked into using them in your purchase. There should be no costs associated with getting pre-approved. If you look without a solid budget, you risk wasting a lot of time and potentially falling in love with a home you simply cannot afford. A pre-approval will also help sellers take you seriously. Most sellers will not consider offers without knowing the buyer has been pre-approved.

In order to give you a pre-approval and to determine the mortgage amount you qualify for, your mortgage lender will ask you about your financial situation. The lender may or may not require all documentation to back up your statements at this point, but they will require it down the road. The lender will also check your credit score. Here is a list of the most common items needed during the mortgage pre-approval process:

• W2 or 1099 income statements for the last two years
• Federal tax returns for the last two years
• Bank statements for the last few months
• Recent pay stubs or proof of other income