In the current real estate trends, sellers are highly in control and buyers are literally at war. Bidding war. 

Apart from enticing offers, letting the seller know how serious you are can make you one step ahead. One of the ways to show how serious you are is to be pre-approved for a mortgage. 

So how do you do that? 

To get pre-approved for a mortgage, you'll need five things below: 

1. Proof of Income

Buyers generally must produce W-2 wage statements from the past two years, recent pay stubs that show income as well as year-to-date income, proof of any additional income such as alimony or bonuses, and the two most recent years' tax returns.

2. Proof of Assets

The borrower needs bank statements and investment account statements to prove that they have funds for the down payment and closing costs, as well as cash reserves.

3. Good Credit

Most lenders require a FICO score of 620 or higher to approve a conventional loan, and some even require that score for a Federal Housing Administration loan.7 Lenders typically reserve the lowest interest rates for customers with a credit score of 760 or higher.8 FHA guidelines allow approved borrowers with a score of 580 or higher to pay as little as 3.5% down.

Those with lower scores must make a larger down payment. Lenders will often work with borrowers with a low or moderately low credit score and suggest ways to improve their score.

4. Employment Verification

Lenders want to make sure they lend only to borrowers with stable employment. A lender will not only want to see a buyer's pay stubs but also will likely call the employer to verify employment and salary. A lender may want to contact the previous employer if a buyer recently changed jobs.

Self-employed buyers will need to provide significant additional paperwork concerning their business and income.

5. Other Documentation 

The lender will need to copy the borrower's driver's license and will need the borrower's Social Security number and signature, allowing the lender to pull a credit report. 

Getting professional advice before beginning the home-buying process can help you avoid disappointments. Gather the documents that you need before your pre-approval appointment. The more cooperative you are, the smoother the process. 

If you need help, let us know by sending us a message here.