Fall weather is right around the corner, is the market experiencing a cool down too? Existing home sales slipped 0.7 percent in July according to the National Association of Realtors (NAR) but that doesn’t mean it’s a buyer’s market yet.
“Listings continue to go under contract in under month, which highlights the feedback from Realtors® that buyers are swiftly snatching up moderately-priced properties,” said Lawrence Yun, NAR chief economist,. “Existing supply is still not at a healthy level, and new home construction is not keeping up to meet demand.”
First time home buyers still need to be ready to move quickly when their dream home becomes available. Getting pre-approved, not just pre-qualified, is one step to help in your journey to a new home.
Pre-qualification is a letter from the lender giving you an estimate of the loan amount that you may be eligible for. It’s a monetary first impression to help you begin the process of buying a home.
Whereas with a pre-approval, you have an actual statement from the lender saying that you qualify for a specific mortgage amount. The pre-approval gives you a competitive advantage when looking for a home, because it lets the seller know that you are able to make an offer for their home
What Do I Need for a Pre-Approval Letter?
The information needed to get pre-approved may vary by lender and individual circumstances. These include, but may not be limited to:
- Proof of income: Typically, most recent pay stubs.
- Tax documents: W-2 statements give the lender an idea of how much you’ve earned over the last few years.
- Credit information: Your credit score will help determine what type of eligibility you have when applying for a loan.
How Fast Will I Become Pre-Approved?
Pre-approval speed depends on each individual loan scenario. However, the pre-approval process is fairly quick. After filling out an application online, one of our mortgage professionals will reach out you within the next business day (typically 24 hours).
If you are thinking about buying a house in the next 6 months, now is the time to get pre-approved. Find out how easy it is by talking with Go Mortgage today.