Before you start shopping for your property, it is a good idea to make some preparations.
PREPARING FOR YOUR PROPERTY SEARCH
This is a must-do prior to viewing any properties. It is important to connect with a mortgage professional who is intelligent, responsive and dedicated. Keep in mind that there are differences between bank/lending institution employees and mortgage brokers, and it all comes down to the products they are selling. The bottom line is that you need to be comfortable with your payments. In order to get pre-approved you will need to gather the following information:
- Financial account statements
- Recent pay stubs (last few months is usually sufficient)
- Bank account statements (last few months)
- Investment account statements
- Auto loan documentation
- Credit card account information
- Tax returns for the last two years
- 401K statements, stocks, bonds, and other investments, life insurance policies
- Investment property information including copies of lease agreements
- Credit Score and Spending
Check your credit scores and make sure they are high (you can talk to your mortgage professional about where they need to be for the type of loan you are obtaining). Also, starting right away you need to be careful with spending habits. Do not make any big-ticket item purchases, like cars, furniture or trips until you have closed escrow on your property purchase. Lenders do not like to see that when you are in the midst of a purchase and it could cause your loan to be denied. Likewise, with job changes – you need to have several solid months of employment history with the same employer (usually 6 months, but check with your mortgage professional).