First Time Homebuyers in Las Vegas: Why It’s Important to Get Pre-Approved for a Home Loan
For many first-time homebuyers, it’s hard to know where to start with the home search and buying process. It’s easy to want to jump in and start looking at properties right away, especially in a healthy market like Las Vegas which features gorgeous homes. Yet taking care of the financial aspects of the process beforehand will help you understand what you can afford, encourage sellers to see you as a more serious buyer, and enable you to close your home purchase quickly once you find the property of your dreams. Here’s what you need to know about the pre-approval process.
What information is needed for a pre-approval: To obtain a mortgage pre-approval, you’ll need to contact a mortgage lender. The lender will ask for basic information related to your income and assets. They’ll also pull a copy of your credit report. From this information, the lender will calculate your assets to debt ratio and project the maximum amount you’re able to afford. The pre-approval process will enable you to understand both a total purchase amount and a monthly payment schedule.
How to use a pre-approval during the search process: Once you’ve received a pre-approval letter from the lender, you’ll be able to leverage this in two ways. The first is to help you narrow down your search criteria to properties that fall within your budget, so you’re not wasting time and falling in love with properties you can’t afford. The second is when you’re looking at selected properties or making an offer. By providing a pre-approval letter, you’ll show Realtors and sellers that you’re a serious buyer in a financially solvent position.
What to expect after the pre-approval process: Once you’ve made an offer on a home, you’ll be required to provide additional documentation to the lender in order to finalize the loan. A partial list of documents includes copies of paystubs, W-2s, previous tax information, bank and investment statements, and details related to topics such as gifts received toward the home purchase or information related to your business if you’re self-employed. A lender will advise you on the specific documents needed relative to your unique situation.
Are you considering purchasing your first property, or jumping back into the real estate market after a long hiatus? Contact Sydnee Johnson today to arrange for a personalized consultation to discuss your unique situation, goals, and learn more about how to get prequalified for a home loan.