There are a lot of things that have to happen to get you closed on your loan and moved in to your new home. We at PMG have a proven system that we have been refining since 2001 to get your loan closed as quickly and efficiently as possible. We have broken this complex process into a series of bite-size pieces and built it into a system to make sure that we get you to the closing table on time every time.
Let’s tackle the first checkpoint on your way to home ownership: Preapproved.
The first step in getting you preapproved is for you to complete our online EZ Loan Application. The application is very user friendly and will take less than 10 minutes to complete. You won’t need to have any information handy. You will know all the answers in your head. If you aren’t sure about something, leave it blank, and we will address it when we review the application together.
Once the loan application is complete, we will call you to review the information and tie up any loose ends. Based on your loan application, we will run your file through our automated underwriting system (AUS) and, based on the findings, will request the necessary documentation to get you fully preapproved.
Here are the documents we typically need to complete the preapproval:
- Thirty days of pay stubs
- Last two years of filed tax returns
- Last two years of W2s
- Current bank statement showing funds to close
Once you are fully preapproved, congratulations! It’s time to look at homes. We will provide you and your real estate agent with a preapproval letter that details your price range based on how much money you have earmarked for a down payment, your monthly payment requirements, and how much the lender will approve you for.
We highly recommend that you get preapproved prior to looking at homes. You are going to know which home is right for you when you see it. Homes tend to move quickly, and you will want to be in a position to write an offer when you find the right one.
Preapprovals are generally good for ninety or 120 days, depending on what type of loan you are getting. Credit reports on conventional loans are good for ninety days. They are good for 120 days on FHA, VA, and USDA loans.
Updating your preapproval is as easy as pulling a new credit report.
A change, for better or for worse, to your income or expenses could affect your preapproval. If you get a big raise at work, then we may be able to increase your preapproval amount. Or perhaps you finance a new car. In that case, we may have to decrease your preapproval amount.
If you have any significant changes to your loan application in terms of income or expenses, let us know as soon as possible so we can discuss the impact they will have on your loan preapproval.
Next, we will tackle Checkpoint 2 – In contract.