The PRE pre-approval checklist

Elgin Fox Valley, IL – Welcome to the 2014 spring housing market!  The fresh spring air, warmer temps and plenty of new homes are looking for a buyer.  But before heading out the door to open houses, serious buyers need to line up financing first.  A buyer puts in an offer with a pre-approval from a mortgage lender, not a pre-qualification.  Here are some tips to ensure a smooth approval process:

  • Review your credit report for errors and fix anything that is incorrect.
  • See if there are any easy actions you can take to improve your score.
  • Avoid opening new charge accounts, charging large amounts or anything that might ding your credit score.
  • Collect paper versions for the last 3 months of bank statements, last two W2 forms, in addition to a 30 days’ of pay stubs.
  • If you’re self-employed, locate your last two years of tax returns.
  • Have your down payment money and closing cost money available in your bank account (untouched) for at least 60 days.
  • Renters:  Pull a year’s worth of canceled checks, showing on time each month with your rent payments.
  • Any forms that you can copy and put into a PDF format will be ideal for emailing to your lender, agent and attorney and a big time saver.

Also, save your credit score!  Your mortgage lender can offer more details, but take note:

  • Don’t apply for new credit.
  • Don’t cancel any current cards.
  • Don’t make any major purchases.
  • Don’t ask a creditor to lower your limit.

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