How to Get Preapproved for a Home Loan

Having a pre-approved loan will put you at the top of the list when presenting an offer.

Difficulty: Moderate

Instructions

Things You'll Need:

• Credit Reports
• Online Mortgage/finance Services

1. Call lenders and compare their loan programs and rates.

2. Select a loan program that best suits your personal and financial needs. Consider such things as how long you plan on living in a home or if your income will be increasing significantly in the coming years.

3. Provide your lender with the copies of the following information: most recent two years' W-2 forms; most recent month's pay stubs; the last two years' federal tax returns; your purchase agreement (if you already have it); profit and loss statements (if you're self-employed); most recent two years' corporate returns (if you own a corporation); your last three months' bank statements on all accounts (to verify down payment); bankruptcy papers (if applicable); and a completed loan application.

4. Wait. The loan process from start to loan approval for a typical loan transaction will take anywhere from one and a half to three weeks, depending on the particulars of your transaction and your lender.

Tips & Warnings

• Your lender may ask you to provide further information such as additional bank statements, pay stubs and other documents, especially if you're self-employed or have an unusual situation.
• If you're divorced, the lender may need to see a copy of your divorce papers.
• Depending on the lender, you may be required to pay an up-front fee for processing, application or appraisal. Shop around. Ask if fees are refundable if you don't complete the transaction.