3 Steps to Take Before Applying for Mortgage Preapproval

If you’re buying a home for sale in Tampa Bay, you’ll probably want a mortgage preapproval letter from your lender before you start looking (it’s a great way to find out how much house you can afford, and if you find something you love, you can make an offer right away with a valid preapproval letter).

In order to get preapproved, though, there are three things you need to do first.

3 Steps to Take Before Applying for Mortgage Preapproval

#1: Clean Up Your Credit

Check your credit report (you can get a free copy once a year, thanks to the FTC) to make sure there aren’t any errors. If there are, dispute them as soon as possible.

#2: Gather Your Documents

Pull together all the documents you need for mortgage preapproval, like income information (such as W2s and past tax returns, as well as proof of other benefits or pay you receive) and asset information (like bank account statements and investment statements).

#3: Think About How Much You Can Afford

Your lender will let you know how much you’re approved to borrow, but make sure you’re being realistic. Just because you’re approved for a $400,000 home doesn’t mean you need to buy a $400,000 home. Make a list of your needs and wants from your new home so you can be prepared for preapproval.