It’s often best to start shopping for a house only after getting preapproved for a mortgage. Once a lender preapproves you, you can perform a home search based on the preapproval amount or less. You will also be able to prove to sellers that you are not wasting their time and you can afford their house.
Here are the documents City Creek Mortgage suggests you prepare if you hope to get preapproved for a mortgage in Sandy:
Proof of Income
Lenders will want some documentation to prove your income. Requisite documents include W-2 statements and tax returns for the past two years, latest paycheck stubs that show your present and year-to-date income, and proof of any extra income.
Proof of Assets
You may need to demonstrate to your lender that you have enough funds for both the down payment and closing costs. You’ll also need to provide a list of your assets. Useful documents include bank statements, investment accounts statements, auto titles, real estate, or a gift letter if you’ll be funded by a loved one or friend.
A Good Credit Score
You may not need to hit a perfect credit score before shopping for a mortgage in Sandy. Still, good credit is important when applying for a mortgage. Serious borrowers start working to improve their credit rating several months before they visit a lender.
You may have already presented your paycheck stubs. But your lender may need to have a chat with your employer to confirm your employment status and salary. If you’re self-employed, you will need to provide documents concerning your business and income.
Other Applicable Documentation
Most lenders ask for the borrower’s social security number, a copy of driver’s license, and signature allowing the lender to get a credit report. Your lender may also request additional paperwork before preapproving you and even after the approval session.
You don’t want to torture yourself looking for a house only to be told you can’t afford the dream home you just found. Get mortgage ready. Talk to a mortgage planner or lender before you begin your home search.