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Pre-Approval Process
Potential Buyers -- Some buyers will want to know their purchasing power even before they decide on a realtor. We can help you accomplish this by providing you with a Pre-Approval.
Our pre-approval process requires a brief interview. It will take approximately twenty minutes of your time. We will essentially ask for all the critical information necessary to assess your purchasing power. The critical information we need is your income, documented by the previous two years W2s and 30 days worth of paystubs. Self-employed borrowers will need to provide a complete federal 1040 income tax return.
We will also need to know your credit history. We accomplish this by ordering a tri-merged credit report. This will provide a history of all reported credit activity from the three major repositories where your credit activity resides. We will also obtain three credit scores with the credit report we receive. These credit scores are critical information that the mortgage lending industry has become extremely reliant on as predictors of future payment performance.
Credit scores range from a low of 350 to a high of 850. The score must often associated with good credit is a threshold score of 680. It is important to keep in mind that a score below 680 will not necessarily by any measure prohibit you from obtaining a pre approval. There are a number of considerations they come into play when a loan is underwritten. A borrowers income, the amount of down payment, and credit history are all components of the approval process.
Once we have income, credit history and the amount you have available for a down payment and settlement costs we can go to work and underwrite your loan to determine your maximum purchasing power. It is important to keep in mind that you may not want to purchase at your maximum purchase price due to the payment that results from the amount that you can be approved. It is important that you are comfortable with the resulting payment for which you are responsible.
With your pre-approval in hand, you will be able to begin the house hunting process and be on your way to finding a home that that best meets your needs and your budget.
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