Getting a house and having it to call your own can certainly help you be part of the American dream. If you think that you have reached the time in your life that you are finally ready and able to buy a home, then you may think that the first step you should take is looking at new houses. However, the first thing that you should actually be doing is getting pre-approved by a loan officer. The pre-approval process will show you the loan amount that you qualify for based on several different factors, but what are those factors? This article will take a closer look and see. Ready to learn a little bit more?
Proof of Employment
One of the things that the loan officer will want to see is a proof of stable employment. Typically, they like to see that you have been employed for at least a couple of months. To verify your employment, they will usually ask for a few pay stubs and then they will call your human resources department to make sure that you are still employed and that you aren't going to be fired anytime soon.
Bank Statements With Deposits
Another thing that they will want to look at are your bank statements. They will want to make sure that you are getting regular bank deposits from your paycheck and that you have enough money in your savings account. For instance, if you are planning on putting $10,000 down on your house as a down payment, they will want to make sure that you have that amount in your savings or in another account.
A lot of times, bank lenders will also ask for your tax forms from the previous few years. Even if you have changed employers in the past few years, showing that you have filed taxes and that you have made a certain amount of money consistently will give them a lot of insight into your finances. If you are applying for a home loan with a spouse or a partner, they will typically also ask to look at their W-2 tax forms as well.
Buying a home is probably the largest financial purchase you will ever make. Once you have a pre-approval letter from your lender, you will have the exact amount that you will be able to qualify for. Then, you can call your real estate agent and have them start showing you houses in your price range.
For more information, contact banks like Valley Central Bank.
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