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Getting Pre-Approved for a Sacramento Home Loan

Writer's picture: Michael BoitoMichael Boito

If you are starting your home search as a serious buyer, you want to consider getting pre-approved for a home loan. It requires a bit of work upfront but can streamline the process and make purchasing your home that much easier in the end.


What does it mean to be pre-approved?

Getting pre-approved means that your lender has reviewed your information in enough detail to approve your home purchase. They typically put a cap to the limit that you can borrow but guarantee that you will be approved as long as nothing in your financial situation changes.


Getting pre-approved is for you as the buyer and not designated for a specific home.

You will still need to provide additional documentation and go through the home buying process to get an official approval and clear to close. This can include greater detail about some financial information, such as your expenses and income. It also means getting more information about your house to make sure that it meets all of the requirements that your lender or mortgage program has set.

What do I need to get pre-approved?

Your lender will give you a specific list of documents and information that they need to review and process your pre-approval. These almost always include:

  • Proof of income: This can be a W-2, tax return, or self-employment income sheet. The specifics will vary by situation but you will need to show that you have the income to support your home’s purchase.

  • Employment verification: Just like you have to show your income, you also need to show that you are employed and expect to remain so in the future. If you are self-employed, expect to provide more information and documentation about your work.

  • Proof of identification: Your lender will need to make sure that you are who you say you are. This can be provided through a copy of your driver’s license or other photo ID. You will also need to provide your social security number to run your credit history.

  • List of assets: Bank statements show your position going into the loan. Your lender wants to know that you have enough money to cover the down payment as well as adequate cash reserves.

  • Credit check: To get a pre-approval letter, your lender will need to get your credit score. This is a required part of the home buying process for all reputable lenders and is best done early in the process to make sure that there aren’t any issues.

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©2022 MoneySafe Mortgage is licensed in CA | NMLS ID # 1198709 (www.nmlsconsumeraccess.org) | 725 30th Street, Suite 207, Sacramento, CA 95816 | (916) 790-LOAN | Licensed by the Department of Financial Protection and Innovation under the California Residential Mortgage Lending Act License # 60DBO88399 | Licensed as a mortgage broker under the Department of Real Estate. License # 01954813 For licensing information go to: www.nmlsconsumeraccess.org

 

Loans made or arranged pursuant to a California Finance Lenders Law license.

 

A preapproval is not a loan approval, rate lock, guarantee or commitment to lend. An underwriter must review and approve a complete loan application after you are preapproved in order to obtain financing.

 

This is not a commitment to lend. Prices, guidelines, and minimum requirements are subject to change without notice. Some products may not be available in all states. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision.

 

This information is provided by MoneySafe Mortgage. Any materials were not provided by HUD or FHA. It has not been approved by FHA or any Government Agency.

 

For Reverse Mortgage: When the loan is due and payable, some or all of the equity in the property that is the subject of the reverse mortgage no longer belongs to borrowers, who may need to sell the home or otherwise repay the loan with interest from other proceeds. The lender may charge an origination fee, mortgage insurance premium, closing costs and servicing fees (added to the balance of the loan). The balance of the loan grows over time and the lender charges interest on the balance. Borrowers are responsible for paying property taxes, homeowner’s insurance, maintenance, and related taxes (which may be substantial). We do not establish an escrow account for disbursements of these payments. A set-aside account can be set up to pay taxes and insurance and may be required in some cases. Borrowers must occupy home as their primary residence and pay for ongoing maintenance; otherwise, the loan becomes due and payable. The loan also becomes due and payable (and the property may be subject to a tax lien, other encumbrance, or foreclosure) when the last borrower, or eligible non-borrowing surviving spouse, dies, sells the home, permanently moves out, defaults on taxes, insurance payments, or maintenance, or does not otherwise comply with the loan terms. Interest is not tax-deductible until the loan is partially or fully repaid.

 

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