Why it’s important to get Pre-Qualified
October 21, 2018 | Return to Financial Education
Cherie Good - Mortgage Loan Originator NMLS# 1520929
Let’s face it- it has become a seller’s market. What does that mean for you? If you are planning to sell your home, you can expect to see an offer within a shorter period of time. If that is the case, what is your plan for your next home? Not only do you have to think about all the items to get ready to list your home, but in that process- are you also thinking about financing for your new purchase? With homes receiving multiple offers after only a few days on the market, it is incredibly important to make sure you have a pre-qualification letter for your next home.
Why? You don’t want to get caught in a situation where you have a pending offer on your old home and haven’t even begun the process of finding and financing your new home. This letter helps to ensure that you have taken the necessary steps to show that you are a serious shopper and you can afford the purchase.
What can you do now to get ready for your next purchase? Start gathering your financial documents. For pre-qualification, it isn’t always a requirement to provide all financials, but having them handy will help when you find a home and are ready to move into your purchase application. The standard documents to gather are:
- Two most recent paystubs
- W-2s for past two years
- Last two years tax returns
- If retired, pension/Social Security award letters,
- Two months of asset statements (all pages) – this can be from bank or retirement accounts, investments, etc- showing confirmed balances of the assets you will use to purchase your new home.
One tip – if you requested pre-qualification and you are not being asked to verify items on a current paystub…. please proceed with caution! There is a higher chance that your pre-qualified amount may not be accurate and there is nothing worse than shopping for a home that in the end you cannot afford!
If you are ready to take this step, reach out to your local lender. We take great joy in discussing this next step with you and coming up with a solution that will work best for you not for the right now, but also for the future.
Once you have your pre-qualification letter, reach out to a local realtor and have fun shopping!