Purchase Pre-Approval
Why be pre-approved?
A prequalification or preapproval letter is a document from a lender stating that the lender is tentatively willing to lend to you, up to a certain loan amount. While a pre-approval is not a loan commitment, it is extremely helpful in speeding up the approval process, once an offer is accepted and a closing date is determined.
Today’s seller will not accept an offer from a potential buyer without a preapproval letter. In the past, many buyers opted for the easier-to-obtain prequalification letter. In today’s market, however, bidding wars are commonplace and a full preapproval letter is a must. The letter must state the lender has not only verified your credit, but your income and assets as well.
Serious homebuyers need to start the process in a lender's office, not at an open house. Sellers expect buyers to be pre-approved, so take the proper steps to set yourself up for success.
Pre-Approvals are Free! There is no application fee, or fee of any kind, to get preapproved.
Fortis Mortgage Advisors provides same-day review and pre-approval.
Step by Step process:
Step One: Submit an online loan application
Step Two: provide income documents
2 years tax returns
2 paystubs
2 years w-2’s
Step Three: Provide Asset Information
2 months bank and investment statements
1 quarter retirement or 401k Statements
Step Three: Provide credit check authorization/Credit Pull
Confirm outstanding liabilities
Disclose any new or pending credit requests in the last 60 days
Step Four: Review income, assets, credit report liabilities and proposed downpayment, property taxes and homeowners insurance costs to maximize buying power.
Step Five: Pre-Approval letter is generated and now you can feel confident in shopping for your new property!
Pre-Approval review
Debt to income review and calculation with proposed housing payment (PITI)
Down Payment and closing cost review against current assets
Credit review to ensure all liabilities are calculated correctly
Strategize with your lender to optimize you mortgage financing with your budget and offer to the seller