Mortgage preapproval is one of the easiest ways to make your home-buying process more successful. With preapproval, you can act faster when you find the home you want, making it more likely that your bid is the winning one. Our REALTORS® want to be sure you know all about preapproval so you can benefit.

Beavercreek homes for sale are among the most in-demand in Ohio. Every advantage that you can give yourself as a prospective buyer is valuable. Preapproval greatly accelerates your buying timeline and removes much of the uncertainty in the process, making it great for you and the seller.

What Is Mortgage Preapproval?

Preapproval means that a lender has reviewed your finances in detail and made a determination about the kind of financing package you qualify for. This enables you to access that financing right away as soon as you locate a suitable home. This contrasts prequalification, a general review of your finances, and a loan estimate.

Preapproval can take anywhere from a month to several months, so it's best to begin as soon as possible. Preapproved buyers are much more attractive to sellers because they can move forward immediately. That could be essential for sellers who have a sensitive timeline.

Getting Ready for Mortgage Preapproval

Here's how to get prepared for preapproval and make it work for you:

• Prepare Your Proof of Income
  First, lenders will look at your proof of income to ensure you qualify for a loan package. For most employees, your W-2s and tax returns are the best proof of income. Recent pay stubs might be acceptable, although it can be more difficult to assemble enough for the typical three-year income check. If you are self-employed, 1099 forms are typically reviewed by lenders. Remember: Alimony counts as income!
  
  
• Prepare Your Proof of Assets
  You must submit recent bank statements for all checking and savings accounts. Lenders may ask about recent expenses and purchases. If you have a retirement account or any kind of investment account, you might need to submit information from those as well. Naturally, investment account value may go up and down over the course of a purchase, so you might be asked to provide occasional updates.
  
  
• Ready Your Credit Score
  Your credit score is one of the most crucial factors in determining what interest rate you may qualify for in your home loan. It is wise to do everything you can to pay off your debts before you embark on a home purchase! A difference of just a few points can significantly impact how much you will spend over time. Aim to pay off high-APR debts and avoid taking on new debts, especially automotive loans.
  
  
• Contact Your Employer
  These days, lenders want to see a steady employment history of at least five years before engaging with most prospective buyers. Being unemployed for even a week may disqualify you. That being the case, they will want to secure proof of employment directly from your workplace. Contact your workplace in advance so your consent is on file—otherwise, many companies will not provide this information.
  
  
• Make Copies of Key Documents
  Last but certainly not least, you will need copies of documents such as your driver's license and Social Security card. There may be special requirements, such as having a notary verify your identity before copies may be submitted. Check with your lender for the details.

Contact Wright-Patt Realty to find out more, or get started today.