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Top 3 Mortgage Preapproval Tips for First Time Home Buyers

1/14/2011

Preparing for a mortgage can be a complex process, especially if you’re a first time home buyer.  One of the most important steps in the home purchase mortgage process is preapproval.  You should try to get preapproved for your loan as soon as possible.  If you can, get preapproved before you being searching for the home you want to purchase.

The following steps will help you prepare to get preapproved early in the process.

• Check your credit score.  If your credit score is low or if there are any errors, try to get these issues resolved as soon as you can.
• Gather the paperwork you’ll need to show to your lender to get preapproved.  This will differ from lender to lender, but you’ll most likely have to provide bank statements, pay stubs for at least two months, and W2 forms.  You may also need to provide tax returns.
• You need to have money saved up for the down payment and the closing costs.  This money will need to be present in your account for at least 60 days before you try to get preapproved.

These steps will help speed up the preapproval process.  Before you do any of this, though, make sure you’ve located the lender who offers the lowest mortgage rates in your area.

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