01/05/2021
Get pre-approved first then find a realtor:
Unless you’re buying a home with all cash, getting pre-approved by a lender will give you an official verdict on your home buying budget. In order to get pre-approved, a lender will calculate your debt-to-income ratio and assess your overall financial health by reviewing your:
• Income statements, like W2s, 1099s, rental income and tax returns
• Assets, like bank statements and retirement accounts
• Debts, including monthly expenses like student loans, credit cards and other mortgages
• Records of bankruptcies and foreclosures
• Current rent, child support payments, alimony payments and any down payment gifts
When you’re pre-approved, you’ll receive a pre-approval letter. Not only does it officially let you know how much you can borrow, but it can come in handy when submitting an offer. A pre-approval letter shows a seller you’re serious about buying their home. This is especially important in a hot market, when you’re likely competing against other offers.
