Buying a Home? Get Pre-Approved FIRST!

home0816-2Before you start house hunting, there is one important thing you should do – get pre-approved for a mortgage first.

A mortgage pre-approval gives you a good idea of how much you can afford to spend on your new home, and you will appear to be a serious home buyer to the seller.

During the mortgage pre-approval stage, a loan officer will check your credit report and financial documents to verify the information you provided beforehand. Once pre-approved, the loan officer will give you an estimate on how much you can spend, the interest rate, and the loan type. Keep in mind that this does not guarantee you a mortgage, but the likelihood of your signing a mortgage contract is higher with a pre-approval.

Here are some dos and don’ts for a smoother pre-approval:

DO: Maintain your credit score

A credit check is a crucial part of the pre-approval process. Your credit score is a summary of your credit history that shows lenders how creditworthy you are. If you don’t know your credit score, you are entitled to a free credit report once every 12 months. Check your credit report for any discrepancies and have them corrected before applying for a loan. If you’re applying for any type of loan, you should aim for a credit score of 700 or higher. The better your credit score, the lower your interest rate may be.

Prepare your financial documents

Keep a file of all your most recent financial documents. The documents required by the loan officer for a pre-approval are:

• Recent pay stubs
• Federal Tax returns from the last 2 years with W-2s
• A complete list of your debts • List of assets (bank statements, investments, 401 K)

The best thing to do is to leave your finances as is throughout the mortgage process. The following actions can affect your pre-approval,

DON’T:

• Change jobs
• Open new credit cards
• Purchase expensive items on credit
• Transfer large sums of money

Although, the mortgage process is not as simple as applying for a credit card, don’t let that stop you from owning your own home! The friendly and knowledgeable staff at CU Network Services is committed to assisting you on your path toward home-ownership. Contact them at 529-4599 or visit their office located at 681 S. King Street.

Locations Hawaii
Michael Marks
Sandwich Isles Realty
Kimo Smigielski, Broker-in-Charge
R, ABR, CRS, GRI, e-PRO
Hawaii Life Real Estate Brokers
Emily Garcia
Agent, REALTOR(A), RS-77391
Coldwell Banker
DAY-LUM Properties

Edith Crabb, RB-8195
Coldwell Banker
DAY-LUM Properties

Glenn Takase, RB-18547
Coldwell Banker
DAY-LUM Properties

Misti R. Tyrin, RS-75836
Coldwell Banker
DAY-LUM Properties

David L. Skeele, RB-12882
Kauai Landmark Realty
Phil Fudge, RB-18576
Claire Keaton, RS-73854
Coldwell Banker
DAY-LUM Properties

Shea Miyashiro, RS-64678
Coldwell Banker
DAY-LUM Properties

Atsuko Winston, RS-75899
Coldwell Banker
DAY-LUM Properties

Mark Skeele, RS-77005