Home Financing

Now that you know you want to buy a house, how do you know how much you can afford and if you qualify for a loan? Get a competitive edge by getting pre-approved for a mortgage.

The process of buying a home is not one to enter lightly. Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to get pre-approved for a loan early in the homebuying process. By taking this step, you stand out from the crowd. It shows sellers you’re a serious and qualified buyer and can give you a competitive edge if you enter a bidding war. 

How pre-approval works

Mortgage pre-approval is an evaluation of your financial history by a lender to determine if you would qualify for a home loan. It indicates how much a lender would be willing to lend you. If you meet the lender’s guidelines for issuing a loan, you will be issued a pre-approval letter, which states the home loan amount the lender is willing to let you borrow. 

Find a Lender

If you don’t already have a mortgage lender in mind, let us know. We can put you in touch with some of the best in the industry.

Financial Documents

Gather together financial paperwork (income, bank statements, W-2 forms, etc) you will need to supply the lender to support your loan application. 

Meet with Lender

Meet with your lender to discuss your financial goals and needs, mortgage amount, down payment, home purchase price, etc.

Mortgage Options

Learn about all the different mortgages available (fixed vs. variable rate, interest terms, payment options, amortization, etc), and discuss which best suit your needs.

Loan Application

Complete a loan application, which will require you to provide documentation regarding your employment, income, assets and liabilities.

Credit Report

Authorize your lending specialist to check your credit history. Make sure you’ve been paying your student loans, credit cards, and car loans on time!

Mortgage pre-approvals are usually good for fixed amount of time depending on the lender, and they are subject to your continued good credit. Our advice is to always fully disclose and discuss your plans with your loan officer before you do anything financial in nature. 

Loan Application Checklist

Most lenders will have you go online to apply for pre-approval. You will be asked to provide documents that help determine how much you are qualified to borrow, including a credit report, W-2 forms, pay stubs, Federal Tax Returns and recent bank statements. The lending specialist will typically ask you to upload the documents through a secured link. Download our loan application checklist here.

Mortgage Application

Once you have found the property you’re ready to buy and your offer has been accepted, your mortgage lender will help you complete a full mortgage loan application, and talk you through the various fees and down payment options. The application is then reviewed, and the home appraisal and title examination ordered. Finally, the loan is sent to an underwriter, who reviews and approves the loan if it meets compliance.

Closing

Once your loan is approved, your documents will be sent to the title company where you’ll sign for the new home and pay any remaining costs. The loan is then recorded, and you get the keys to your new home! 

Nancy Dinshaw Real Estate Team

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Our goal is to serve our clients for the long term by educating, informing and sharing our expertise about the real estate market.
NANCY DINSHAW, Broker Associate
DRE# 01924283
19400 Stevens Creek Blvd, Ste 200
Cupertino, CA 95014
© 2021 NANCY DINSHAW ALL RIGHTS RESERVED. DRE# 01924283. KELLERWILLIAMS REALTY is a licensed Real Estate Broker and abides by equal housing opportunity laws. Website by Audacious Designs.
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