Unless you are paying all cash for your real estate purchase, it is important that you align yourself with a mortgage lender and get pre-approved for a loan.  If you decide to submit an offer on a property, a pre-approval letter from your lender must also be submitted.  Pre-approval status is what you need to achieve, not pre-qualified.  There is a difference.  It is best to get pre-approved BEFORE going out house hunting.  You don't want to fall in love with that perfect house, just to find out that the monthly payment is unaffordable.

Remember when shopping for mortgage rates, shop all your sources on the same day.  Don't shop Lender A today, then Lender B tomorrow.  Rate quotes obtained on different days may not be comparable due to market volatility.  Furthermore, the interest rate you pay may depend on your credit score and other factors.  Once you have chosen a lender that you feel comfortable with, it is important that you provide them your financial information in a timely manner.  Here is a list of some items you will need to provide your lender in order to get started:

• Fill out the standard form 1003 - Uniform Residential Loan Application.
• Photo ID and Social Security Number.
• Permission to run your credit report.
• Employer pay stubs for the last 2 months.
• Employers list, W2's and tax returns for the last 2 years.
• Bank Statements, 401k, stocks, bonds and/or any investment and asset account statements for previous 2-3 months.
• List of other assets such as vehicles that are paid in full. 
• Verification of the source of your purchase good faith deposit and down payment funds.
• If you are self-employed, Profit & Loss statements (IRS Schedule C) and tax returns for current and previous 2 years.

Providing this information to your lender in a timely manner is very important to the home buying process.  If you would like me to refer you to a competent lender, please give me a call at 408-768-9255.  Kind regards, - Andrea.

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