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Getting pre-approved is not only the first step for home buyers, it is also the most critical. First, you should find a good mortgage person to work with. We have a handful of lenders we trust that we can recommend to you.

The main point of the pre-approval is to find out what the bank will lend you and what kind of mortgage you are comfortable paying for. Banks typically give you more money than you actually need to purchase a house. It’s important to look at the entire monthly payment in order to figure out what loan amount works for you.

In order to get pre-approved, you need two years of tax returns, three months of bank statements, and any information you have on outstanding loans. Get everything together and show it to the bank. This is important in order to figure out how much you can afford.

There are also many different loan programs available to you. Some loans come with certain interest rates and some run for a certain amount of time. For example, you can get a 30-year fixed loan, a 15-year fixed loan, or a 5-year ARM loan. If you’re just getting a starter home and you only plan on being there for about seven years, the ARM loan might be best for you. It all depends on your unique situation.

If you have any questions about the pre-approval process, give us a call or send us an email. We would be happy to help you!