Make sure you get approved for a loan prior to your home search. It a guideline for how much you can afford. it will help you narrow down your home search from the start and allows you to be taken more seriously in the bidding stage if you already have that approval letter from your bank.
It’s simply a matter of talking to your lender and getting them the information they are requesting. After they have a couple days to check your financial situation then they will provide you with a letter.
Preapproval process: what you may need to bring with you.
• Federal tax returns for the last two years.
• W2s (or 1099 statements) for the last two years.
• Bank statements for the last two months.
• Recent pay stubs and proof of any other income.
• Proof of assets (stocks, mutual funds).
• Information about your current debts.
• Information about the source of your down payment and how much you have for a down payment, including gifts. (remember that a down payment is differnt than earnest money)
If you are thinking of buying a home DO NOT open ANY new credit card accounts or loans for at least six months prior and make sure you closed on your home before you purchase that new furniture too. DONT EVEN GO OUT 2 DAYS OR A DAY BEFORE CLOSING! WAIT!