A pre-approval letter is a powerful tool in your search for a new home. It shows the sellers that you're serious. Many buyers find that they have increased negotiating clout if they are pre-approved before they conduct their home search. Plus, if you're pre-qualified, it's a snap to apply for full approval once you've found your dream home - or want to begin building one.
While a pre-qualification is an estimate of what you can afford based on the information you provided, a pre-approval indicates that a lender has taken a detailed look into your financial background and examined your credit. In addition, a pre-approval means the lender has committed to lending you a specific amount of money, pending certain property details.
The advantages of securing a pre-approval, rather than waiting to apply for a loan once you’ve found a home, include being able to shop for a home knowing exactly what you can afford and finding out about possible qualification problems early in the home buying process. You are also able to present a much more solid offer to sellers, because it includes a guarantee that you can afford the home.
To secure a pre-approval, contact me and I will work with you to gather and submit your financial information. I will then review your documentation and your credit report. Once you qualify, I will provide you with a written pre-approval for a loan up to a certain loan amount, down payment and interest rate, subject to the terms of the pre-approval letter. Once you’ve found a home and are ready to make an offer, your pre-approval letter from Greg Phillips will assure the seller you are a qualified buyer, and will be able afford the home of your dreams.
To apply for pre-approval, you'll need the following information:
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Names, current addresses, and Social Security Numbers for all borrowers
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Previous addresses for the last two years
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Pay stubs for the last two months
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Two cycle's worth of bank statements for all assets
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W-2 forms for the last two years
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Tax forms for the last two years
I will have a lender review your application, documentation and check your credit report. After they have determined that you're able to repay the loan, and subject to a full underwriting review, Greg Phillips will send you a letter of pre-approval.
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