Pre- Pre-Approval - Five Steps to Help You Get Approved

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You’ve probably heard the (admittedly smart) advice from many--”Make sure you get pre-approved before you begin shopping for a home!” or “Don’t think about putting in an offer on a house without a pre-approval letter in hand.” However, getting pre-approved may seem like a tricky matter and the idea a bit overwhelming. In reality, preapproval is NOT that bad! You’ll be surprised by how easy the process is and how beneficial it is to you. However, that doesn’t mean it isn’t smart to prepare for the process. Consider these five things you can do now to make pre -approval even easier.

  1. Pull Your Credit Report and Check It - Obtain your credit report from the major credit firms. Make sure there is no incorrect information on it. While mistakes can be fixed, it takes time, so beginning this process as soon as possible is key. Don’t let this step intimidate you, our loan officers are here to help you if any issues become apparent.
  2. Gather Income Information - You will need documentation of (at least) your last two years of income. Now is the time to collect those w2’s, old tax records and other information so you’re not left scrambling when your lender asks for them.
  3. Work Your Credit Score - Is there an old “bad debt” on your report you could pay off? Did you find any misinformation on your report? Makings some simple adjustments could raise your credit score by an enormous amount. Not only will this help you get approval, but it may also improve your interest rate too. Don’t forget, First Liberty Finical Mortgage loan officers can work with you to improve your score.
  4. Organize Assets - Do you have money in 10 different bank accounts? Do you know what investments you have? Do you have a retirement account through your job? Organizing your assets is a more complicated matter than most people think. Make sure you can quickly obtain documents about your assets at a moment’s notice-- this information will be required to obtain a mortgage.
  5. Don’t Do Anything Crazy - If you’re planning to buy a home soon, now isn’t the time to take on a new car loan or charge a lot to a credit card. Just stay calm and steady your finances. It will pay off in the end.

Finally, remember that a preapproval doesn’t bind you to do anything--now or in the future. It may make sense to go ahead and begin the process. Reach out to us at First Liberty Financial Mortgage in Birmingham, Alabama today and let us help you take this important first step towards home ownership.

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