Exit Real Estate Solutions
Shelly Summer Hudson, Exit Real Estate SolutionsPhone: (615) 668-8996
Email: [email protected]

Things You Need to get Pre-Approved

by Shelly Summer Hudson 11/03/2019

In your quest to buy a home, you might check out properties online or looking up houses around your neighborhood up for sale. These are all steps you must first make to attain your desire of becoming a homeowner. Before you go into your search proper, there is something you need to do; it’s called getting pre-approved for a mortgage. 

A mortgage pre-approval involves lenders going through your financial records to determine how creditworthy you are. It’s a process that allows the lender to go through your financial records to determine if you are loan qualified and how much you are eligible to borrow. Being qualified for a mortgage differs from being pre-approved – the latter holds more value to a lender. 

The purpose of getting pre-approved is to convince the lender that if granted the loan, you would be able to payback. Another reason lender asks for pre-approval is to be clear on all your financial situations. The pre-approval process involves lenders going through your financial records either on your request or at their discretion.  The following are things and documents you would be pre-approved about before applying for a mortgage loan.

Proof of Income

The documents showing your income statement is required to validate how much you earn on the average annually. It’s an essential document for pre-approval and underwriting. It involves you presenting your W-2 statements for the past two years, your most recent pay stubs (at least two) and any other additional source of income or bonuses. 

Proof of Employment

Aside from going through your pay stubs, a lender will also want to confirm your employment status from your employer and verify how much you earn. If the job you are working in is a new one, a lender might contact your previous employer. All these are procedures the lender undertakes to ensure they are borrowing to a financially stable individual. Self-employed people would need to provide more critical paperwork about their business. 

Credit Information

A lender would want to measure your debt-to-income ratio before granting you a loan. This procedure involves ascertaining if you are currently repaying any debt like a car loan, student loan or any other loan form. Providing documents relating to this information is vital.

Social Security Number

Lenders need your social security number to verify your identity, to attain your credit reports and also to request your tax returns from IRS. The information is made available through your social security cards, tax documents and all other documents showing your SSN.

Bank Statements

Your bank statement is required to determine if you have enough cash or investments needed to make a down payment, conclude closing cost and still maintain a cash reserve. Your bank statement is one of the essential documents nearly all lenders will request to see to ensure you have enough funds. 

The pre-approval process is the first place a serious homebuyer begins the home application process. Speak to a financial consultant or your real estate agent to help you secure one.

About the Author
Author

Shelly Summer Hudson

 My name is Shelly Hudson, I own/operate Hudson Homes and Properties with EXIT Real Estate Solutions. As a Realtor I bring extensive knowledge of the Real Estate Market, Interior Design and Vision to my career. I work in Middle Tennessee and surrounding counties.   My clients are important to me!!  You, as my client, means much more than a real estate transaction, it's about YOUR life and YOUR dreams.  

I was born in Nashville, TN.  Shortly after my family moved to Florence, AL only to return to Nashville 7 years later.  Having lived in Nashville now for over 30 years it is my "Home sweet Home".   I have many hobbies but among my favorite are traveling, football, golf, hunting, home remodeling and spending time with my family.

My education and training, in harmony with years of experience purchasing,owning and selling investment property allow me to excel at every level of the real estate transaction.  I am known by clients, customers and colleagues for drive, tenacity, perseverance and honesty.  Having a quick response time to each client's needs and concerns is also extremely important to me. I LOVE what I do for a living and consider it a privilege to help others navigate through one of the biggest endeavors of their life. Buying or Selling,I want to be there every step of the way for my clients.  Investment of Heart to each of my clients, that is my mission.

EXIT Real Estate Solutions - Hudson Homes and Properties utilizes the latest technologies, market research and business strategies to exceed your expectations.   Taking a different approach to Real Estate, I have earned the respect of colleagues and clients for my exceptional results. I have built my career on personal touches and positive results.  I am here for my clients from marketing and selling residential/income homes and land, to representing clients in new home construction. Serving the real estate needs of my clients and customers with commitment and integrity.