Why should you get a pre-approval letter before buying a home from a bank or lender?
- The lender will view various documents like taxes (2 years), proof of employment, proof of income (W-2 forms, pay stubs), residence, and debt-to-income ratio to see your borrowing capability.
- The bank will go over various mortgage options to best suit your needs.
- When everything is done, you will have a picture of how much money you can mortgage on a new home.
- Now you have flexibility. Maybe the house you like is below your buying limit and you can do it yourself some things to make it your true dream home.
- Some sellers want to see a pre-approval letter before considering an offer.
In most cases getting pre-approved take 1-3 days. There is a time limit with a pre-approval letter which is 30 to 90 days. Your bank will fill in the details. During this process, you do not want to acquire any loans for a vehicle, change jobs, or put big purchases on a credit card.
For more information, click on our website below: Winner Realtor & Winner SD Auction Buying Info | Shippy Realty | Winner, SD