If you are in the market to buy a home in Lake Tahoe, here are some helpful items to check before you go in to get pre-approved. Getting pre-approved is the first step in getting a mortgage so these steps are incredibly important.
First, you will want to review your credit score and report. This is the most important part as we all know that the higher the score, the better the financing. This also gives you an opportunity to review if there are blemishes on the report as well as repair.
Next you will want to gather your financial information such as the last two years of tax returns in addition to your proof of income. Proof of income includes social security payments, child support and or assistance from the government. If you are self-employed, profit and loss statements to date will need to be retrieved.
Get your personal documents ready and organized. This includes two forms of government ID as well as personal paperwork that affect your finances like divorce, child support, etc. Don’t forget IRA and retirement account balances as well as any money tied up in the stock market. Also be prepared to disclose and discuss past financial issues like bankruptcy.
Save for the down payment and money for closing costs. Having these ready to go help the process along. Be sure to have explanations ready in the event that these designated funds were a gift from someone.
If you own other properties, bring proof of that. If you’ve been renting your current home from a landlord, collect the last years’ worth of rent check copies, email correspondence, receipts, etc. that prove you have been on time with your payments. Ask your landlord for a written referral, put together the last 12 months of proof (such as check copies and money order receipts) showing that you’ve been on time each month with your rent payments. Also ask your landlord for a written referral.
And last, but certainly not least, keep your credit score healthy. Do not cancel any current credit accounts, take on more debt by making a big purchase, apply for new credit cards or ask any creditor to lower a limit.
Now that you have done all of that, it is time to apply for the mortgage loan. Once it is successful your lender will provide you with a GFE, also known as a Good Faith Estimate. This is an estimate of what your general mortgage cost will be if you choose that lender. However, mortgages are expensive. Do not take the first offer. Go to another lender and get pre-approved all over again. Chances are you will want to shop a few houses before you make an offer. Think of pre-approval just the same.
If you are looking to buy a home in Lake Tahoe, be sure to give us a call at 530-543-6676. We can not only advise on the pre pre-approval process, but we can help you find the perfect home within your loan budget.