As a Realtor, I only work with people that have proof that they have the ability to purchase a home.
For most people, including investors, that means a mortgage of some sort. A pre-approval lets the Realtor know how much the client can afford and the terms of their purchase.
Your lender will help you understand the following and the importance of each.
- Pre-Approval
- Why it is needed
- What it says
- What to do with it
- Typical required documents
- Bank statements
- Pay stubs
- Credit report
- Credit Score
- What it means
- How it is graded
- Scoring models
- What not to do
- Debt to Income ratio
- What it means
- What are typical ratios
- The influence on your mortgage
- Payment History
- How it affects your loan
- How it affects your interest rate
- Interest
- Can vary day to day
- Can vary based on loan program
- How rates affect your payment
- Why you want the lowest rates
- How to get the lowest rates
Questions?
If you have any questions before or during the mortgage process, feel free to reach out and contact me.