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What are the requirements to obtain a pre-approval letter?

Before you start looking for a home, you will need to know how much you can actually spend; You need to look at a few things to determine what you can truly afford:

  • The list price of the home

  • The estimated property taxes on the home

  • Any monthly or annual dues, like HOA fees

  • How much cash you’ll put down on the home (in other words, how much of the purchase price you’ll finance)

You also need to look out for the following:

  1. Take into account the selling price of the property and closing costs

  2. Closing costs varies whether you are buying cash or credit.

  3. If buying cash closing cost could be around 1.4% of the selling price

  4. If you are financing your property, closing cost could be between 5% to 6% of the selling price.

  5. If you are financing your property Get Pre-Approved for a Mortgage before you start searching for a property

  6. Without preapproval, you won’t be able to place an offer and both you and your Realtor are losing time

  7. Pre-approval helps you to negotiate with seller

  8. To get preapproved you need to provide some financial information to your mortgage banker, such as:

  • Proof of Income: Borrowers need to be prepared with W-2 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 your two most recent years of tax returns.

  • Proof of Assets: You will need to present bank statements and investment account statements to prove that you have funds for the down payment and closing costs, as well as cash reserves.

  • Credit Score: Most lenders today reserve the lowest interest rates for customers with a credit score of 740 or above. Below that, borrowers may have to pay a little more in interest or pay additional discount points to lower the rate.

  • Documentation: Your lender will need to copy your driver's license and will need your Social Security number and your signature allowing the lender to pull a credit report.

Contact me if you need further information, I can put you in contact with trustful banks and mortgage companies who will review your situation and l find the best solution for you, with special programs for foreign nationals.

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