Before you go home hunting, consider getting yourself pre-approved for a mortgage. Here are six steps towards getting pre-approved. If you have no credit, bad credit, or a lower than desireable credit score, see How to Improve Your Credit Score.
- Contact your mortgage lender and let them know you are ready to get pre-approved.
- Gather financial information for each individual that will be on the loan.
- You will most likely need to provide: last two years of tax returns, pay stubs, W2’s, past two months bank statements, driver’s license and social security card.
- Based on your debt-to-income ratio and your credit score, your mortgage lender will be able to give your a mortgage approval for a certain amount.
- Your lender will evaluate your financial documents and credit.
- If you have a special circumstance or special source of income, let your lender know at this time.
Once you are pre-approved by your lender, you are ready to start searching for your dream home.
6 Steps to Get Pre-approved for a Mortgage