A prequalification letter is the first step to homeownership, but sellers need more…
Get preapproved when you are ready to be taken seriously.
You are prequalified, you’ve spent countless hours working with a realtor and scrolling through homes online, and finally, you’ve found the right home. Now what? You will need to make an offer and hope that the seller accepts. Sellers consider many offers, especially in inventory challenged times, and make their decision on the bid that has the highest likelihood of closing. A preapproval letter tells the seller that your income, assets and credit have been verified and the only missing piece is the home.What is a mortgage prequalification?
With a prequalification letter, you’re getting an estimate of what you might be able to borrow based on high-level information you provide about your finances. It does not guarantee a mortgage itself.
What is a mortgage preapproval?
A mortgage preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place.
When competing with other qualified buyers, you will want to upgrade your prequalification letter to a preapproval letter. Your First American Bank mortgage loan officer will ask you for documents that support your income and assets so we can verify that all we need to close on your loan is a purchase contract. Remember, you are competing with cash offers, non-contingent buyers, buyers with large earnest money and even borrowers who are willing to pay more than the home appraises for!
Here is a document checklist that your mortgage loan officer will likely request to verify before issuing a preapproval letter:
- Recent pay stubs
- Two years of W-2
- Two months of bank statements
- Business returns (if self-employed)
For something as personal as buying a home, you’ll want a personalized lending experience. First American Bank is a trusted mortgage partner for homebuyers who want to simplify the buying process, boost their negotiation power, and close on the property of their dreams.
Ready to make a move? It's easy. To apply for your free prequalification letter online, simply follow the onscreen instructions by starting a new application and selecting “Prequalification.” Your mortgage loan officer will then guide you from prequalified, to preapproved! If you have any questions, contact an Illinois, Wisconsin or Florida mortgage loan officer near you.
