Get Properly Pre-Approved
What’s The Difference?
Not Properly Pre-Approved
Calling a REALTOR First
Unfortunately if you are calling the person listed on the yard sign or any REALTOR first you are already starting the process off in the wrong sequential order. Most Realtors will not allow you to view the property without either being pre-qualified or pre-approved. Plus, don’t you want to know ahead of time what price range you should be looking at? You might not only be wasting the REALTOR’s and seller’s time but, most importantly your own time.
Getting Pre-Qualified
When you are looking to purchase a home and want to know what you can afford, it’s best to get pre-approved for a loan not just pre-qualified. They may sound similar, but they are not the same. When someone is pre-qualified it essentially means they had a conversation with a lender about the state of their finances, no documents were exchanged. When your documents aren’t reviewed by a licensed Mortgage Advisor ahead of time, mistakes happen during the underwriting process. This could inevitably lead to your loan being declined and you missing out on a home.
No Documents needed
You and your lender only have a conversation about your income, assets and other financial matters. The Mortgage Advisor essentially has to take a leap of faith because documents are not reviewed. This simply increases your chances of something going wrong.
Outcome: Your Offer is Rejected
You are more likely to have your offer rejected by a REALTOR in this competitive market as REALTORS are only accepting solid offers. If you were the REALTOR and you had to pick between clients who had their documents reviewed or not reviewed, which would you choose? Even if your offer was accepted, the likelihood of a failure on your loan only increases because no one looked at it ahead of time. Imagine the disappointing feeling and time wasted, nothing anyone wants to participate in.
Properly Pre-Approved
Calling a Mortgage Advisor First
You are now starting the process off in the right sequential order by calling a Mortgage Advisor first. It allows that important conversation between you and your Advisor to occur plus documents can be reviewed ahead of time. This way it will allow you to know what you can comfortably afford and which home prices to avoid. This way you’re not wasting time putting offers on homes you shouldn’t have been looking at in the first place and increases your chances of getting an offer accepted on the right home.
Getting Properly Pre-Approved
Being Properly Pre-Approved means a licensed mortgage advisor has reviewed all necessary documentation needed (i.e. tax returns, bank statements, pay stubs, credit reports, debt-to-income ratios & more.) If everything checks out, you will be provided a pre-approval up to a certain amount. This pre-approval is good for 90 days and can be refreshed at any time for additional time.
Limited Documents Needed
- Two Recent Paystubs
- Two Recent W-2’s
- Two Years Personal Tax Returns
- Two Months of Asset Statements
- Two Recent Paystubs (if they exist)
- Two Recent W-2’s (if they exist)
- Two Years Personal Tax Returns
- Two Years Business Tax Returns
- Two Years K-1’s
- Two Months of Asset Statements
Outcome: Your Offer is Accepted
You have a higher chance of getting your offer accepted by a REALTOR. They understand the difference between the two and if you were the realtor choosing between buyers, you’d pick the one that was Properly Pre-Approved by Stonegate Mortgage too! Not only that but once your loan gets into underwriting, it would get approved faster with less conditions so the whole process makes sense.
Get Properly Pre-Approved
What’s The Difference?
Incorrect Way
Calling a REALTOR First
Unfortunately if you are calling the person listed on the yard sign or any REALTOR first you are already starting the process off in the wrong sequential order. Most Realtors will not allow you to view the property without either being pre-qualified or pre-approved. Plus, don’t you want to know ahead of time what price range you should be looking at? You might not only be wasting the REALTOR’s and seller’s time but, most importantly your own time.
Getting Pre-Qualified
No Documents needed
Outcome: Your Offer is Rejected
Properly Pre-Approved
Calling a Mortgage Advisor First
You are now starting the process off in the right sequential order by calling a Mortgage Advisor first. It allows that important conversation between you and your Advisor to occur plus documents can be reviewed ahead of time. This way it will allow you to know what you can comfortably afford and which home prices to avoid. This way you’re not wasting time putting offers on homes you shouldn’t have been looking at in the first place and increases your chances of getting an offer accepted on the right home.
Getting Properly Pre-Approved
Being Properly Pre-Approved means a licensed mortgage advisor has checked all necessary documentation needed (i.e. tax returns, bank statements, pay stubs, credit reports, debt to income ratios & more.)
If everything checks out, the loan will be pre-approved and we will give you a written statement for financing up to a certain loan amount. This pre-approval is good for 90 days.
Limited Documents Needed
By having documents reviewed ahead of time, you are increasing your chances of getting a loan.
If you are NOT Self Employed
- Two Recent Paystubs
- Two Recent W-2’s
- Two Years Personal Tax Returns
- Two Months of Asset Statements
If you ARE Self-Employed
- Two Recent Paystubs (if they exist)
- Two Recent W-2’s (if they exist)
- Two Years Personal Tax Returns
- Two Years Business Tax Returns
- Two Years K-1’s
- Two Months of Asset Statements
Outcome: Your Offer is Accepted
You have a higher chance of getting your offer accepted by a REALTOR. They understand the difference between the two and if you were the realtor choosing between buyers, you’d pick the one that was Properly Pre-Approved by Stonegate Mortgage too! Not only that but once your loan gets into underwriting, it would get approved faster with less conditions so the whole process makes sense.