The pre-approval is one of the most important first steps in your home buying journey. A pre-approval letter provides documentation of how much mortgage you are approved to borrow from a bank. It is also a necessary step before putting in an offer on a property for sale, as it shows the seller that you are prepared to move forward with a purchase.
We asked a few of our favorite lending partners what they wish clients knew before getting their pre-approval. Here’s what they had to say:
“Think long term. I work with so many first time homebuyers who want to put down the least amount of money to get them into the hot neighborhood. What happens when life throws you a curveball, the market declines, and you need to get out? You walk away with nothing, or you walk away owing something. You should think about your first purchase as a stepping stone.”
– Jessica Prince from First Republic
Ravi Pahuja from Mortgage Network says to,
“Save your money!”
“Have a budget in mind for the monthly mortgage payment. Whether you want to buy in 2 months or 2 years, it’s always best to get pre-approved to set expectations of what you can afford. Many clients believe they should pay down debt first or wait to save more money but going through the pre-approval process will answer all those questions and then the planning can start.”
– Robert Benson from Movement Mortgage
Matthew Attaya from RMS Mortgage adds, “Regardless of what you qualify for, stick to your budget and comfort level.”
In order to make the process go faster, Matthew recommends “gathering the requested documentation (one month of paystubs, W2 and Tax Returns for last 2 years, 2 months bank, brokerage and retirement statements).” It can take time to gather these documents.
The Torii team has a trusted network of lending partners who are knowledgeable, efficient, and helpful. We are happy to put you in touch with our lending partners, or you can click any of the links above to begin your pre-approval process.