The Road to Home Ownership - Get Pre-Approved!

Now that you know how much you can afford it’s time to move onto the next step – Step #5 – Get Mortgage Loan Pre-approval This process involves finding a mortgage lender that you trust and are excited to work with, submitting the financial documents, and calculating the total cost of the entire transaction.

So why might you be doing this step before you've found a home or even a real estate agent? This is a very valid question! The answer is simple though – pre-approved buyers are seen as more attractive. This is the case because being a pre-approved buyer quickens the closing times as well as proves that you are a serious buyer when you do want to make an offer on your dream home. Also, in a market where there are more buyers than sellers, it’s important to secure a firm commitment on mortgage financing.

The process of getting a mortgage loan pre-approval is threefold:

1.       Choose a mortgage lender. Ask for referrals from your friends and family or if you already have a real estate agent, ask them who they would recommend to you. And then make sure you do some research on different lenders – find the one that best fits your needs and someone you want to work with.

2.       Submit the necessary financial documents to your mortgage lender. Your mortgage lender will let you know specifically what you need to send them in order to start your application. Marketplace Home Mortgage has a great system in place called the Market Wise 5-Day Commitment. In order to get approved in 5 days you need to present these items at or before your application:

1.       Most current pay stubs (30 days)

2.       2 months of current bank statements (all pages)

3.       Copy of driver’s license

4.       2 years of W2s and/or 1099s

5.       One year of Federal Tax  returns (all pages)

6.       Most recent quarterly statement for retirement/investment accounts

3.       Calculate the total cost of the home-buying transaction. You should include down payment, closing costs, and escrows for taxes and insurance costs.

Then your mortgage lender will (hopefully) get you pre-approved to make an offer on the house you love and can afford. They will contact you after the application to guide you through the loan process and help you select the best program and interest rate.

Marketplace Home Mortgage is a preferred vendor of Keller Williams Premier Realty – Lake Minnetonka. Jeff Chrast, loan officer, is their loan officer. He is very recommended by the agents in the Wayzata KW office and if you are looking for a professional in the mortgage lending industry who has built a reputation by providing outstanding service to his clients, make sure you reach out to Jeff today and get pre-approved!

Jeff Chrast

Mortgage Planner | NMLS #400101

jchrast@marketplacehome.com

763-482-9369

Apply online @ www.MNRDLOANS.com 

Next, it is time to move onto the “Home Search”. Make sure to check back in soon to learn about the next step in the Road to Home Ownership – finding a real estate agent!