Buying a home in New York City can be a complicated and competitive process, but Platinum is here to make sure all of your bases are covered. Getting pre-approved should be the first step for buyers interested in purchasing a home, as there are many advantages that come with it. Now is the time for buyers to jump before the market starts to recover and interest rates start to rise again! 

If you are choosing to finance your purchase vs. paying cash, preapproval provides buyers with confidence in their ability to obtain financing, demonstrates a buyer’s creditworthiness to the seller for their asking price, and can rapidly speed up the process of closing on your loan and ultimately your home. 

Perhaps the biggest benefit of gaining preapproval for a mortgage is defining how much home you can realistically afford, and thus you can save time by eliminating homes outside of your price range. 

In order to be preapproved, lenders will look at your income, assets and credit score to be able to determine what sized loans you could qualify for, how much you can borrow and what your interest rate might be. You may be required to provide information or documents, such as bank statements and pay stubs, to verify your income to obtain the loan. 

Essentially, seeking pre-approval is the same as completing a mortgage application. Therefore, the lender is going to take an in-depth look at your finances to determine your eligibility for a loan, and you should be prepared to have the following information present:

  • Proof of Income
  • Employment Verification
  • Proof of Assets
  • Credit History
  • Identification
  • Debt-to-Income Ratio (DTI)

Additionally, you should be prepared with the appropriate documentation to ensure the process goes smoothly:

  • W-2 Statements
  • Pay Stubs
  • Bank Statements
  • License
  • Social Security Number

Once all your information is submitted to the lender, you should expect to receive a loan estimate, which will notify you of whether or not you’ve been preapproved for a mortgage and for how much. 

During the coronavirus pandemic driving interest rates have hit historic lows and the buying market is currently extremely lucrative. Getting preapproved and locking in a rate sooner vs. later is a wise choice for buyers in order to get you one step closer to the home of your dreams! 

Message us to learn more about the preapproval process, or to discuss market trends.