If you’re considering buying a home in the Grand Junction area, you may already know what your first step should be: obtaining a mortgage preapproval. Having preapproved financing will smooth the home buying process in several ways. It will:
- Help you determine your budget
- Aid in deciding what type of mortgage suits you best
- Show sellers you’re a serious buyer
- Speed the process of obtaining your home loan
By starting to prepare as soon as you think about buying a home, you can zip through this process and get to the exciting part—finding the perfect new home for you and your family.
What Documents Do You Need for Mortgage Preapproval?
The exact documents needed to get preapproved for a mortgage vary slightly from one vendor to the next. At the very least, you’ll probably need:
- 30-60 days of pay stubs
- The past two years’ federal tax returns
- Your two most recent W2 forms
- 60-90 days of account activity on all banking and investment accounts
Depending on your lender and your individual circumstances, you may need other documents as well. These could include divorce decrees, bankruptcy discharges and other documents affecting your income or credit. If you have additional income, such as from a rental property, you’ll want to provide documentation for that as well.
What (Not) to Do After You Apply for Mortgage Preapproval
Once you’re preapproved for a mortgage, it’s important not to do things that can adversely affect your credit or income. Preapproval is not a guarantee that your lender will approve your financing once you have a purchase agreement for your new home. This is not a good time to:
- Apply for a new line of credit
- Make large purchases, such as a vehicle
- Change jobs
- Fall behind on bills
- Co-sign a loan
Remember that every move you make with your money can impact your credit. When in doubt, be sure to ask your lender how a financial decision can affect your eventual approval for financing.
Are You Buying a Home in Grand Junction?
If you’re thinking about buying a home in Grand Junction, Fruita or any of the surrounding communities, we’d love to help you.
Call us at 970-765-4135 or get in touch with us online to tell us what you want from your next house. We’ll help you find it.
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