Buyer Pre-Qualification

Step 1: Gather Documents and Meet with Your Lender or Mortgage Broker

• •  Last 2 years tax returns
• •  Last 2 years W-2 Form
• •  Last 3-months bank statements (all pages)
• •  Documentation for other income sources (if applicable)
• •  Information regarding source of equity funds
• •  Most recent asset account statements (Brokerage, Savings, 401(k), etc.)
• •  Copies of most recent credit card statements
• •  Copies of other loan statements
• •  Copies of Maintenance or Support Agreements (if applicable)
• •  Completed Loan Application and Credit Check Authorization
     (complete with your lender or mortgage broker)

Step 2: Assess Affordability and Loan Options

Upon completing your loan application, your lender or mortgage broker should be able to indicate the maximum amount of loan and purchase price which you can reasonably expect to obtain. Of course, the maximum loan amount serves only as a ceiling, and you should carefully consider other factors such as projected future employment and income, other monetary obligations, desired savings and reserves for future changes in income or expenses.

Step 3: Obtain a Preapproval Letter from your Lender or Mortgage Broker

The Preapproval Letter is basically a loan officer’s written communication that the borrower fits within a particular loan program’s guidelines . Diligent sellers will request a copy of your Preapproval Letter at the time the offer is presented.