When you present an offer to a seller in Denver you want all the ammo you can get to convince the seller to accept your off. Number 1 is a Pre-Approval which consists of having your loan taken through the application, processing and underwriting stages to obtain your loan approval. This can be done even before you have selected a property. It is a very valuable tool because it gives you three important advantages.
1 Security and Peace of Mind
First, Pre-Approval provides you with the security of knowing your loan is in place. All you have to do is find a property which meets the approval specifications. There is no guesswork at all!
2 A Strong Negotiating Tool
More importantly, Pre-Approval also provides you with a very strong negotiating tool. Sellers are more motivated to deal with a buyer who is serious. They know that if the terms of the sale can be agreed upon and if the property appraises and passes your inspection, the transaction will take place. In essence, you become a cash buyer to the selling and listing agents. Again, the guesswork is eliminated and the financing contingency of the contract can even be eliminated if necessary.
3 A Money Saving Tool
The Pre-Approval process takes about an hour, and can save you thousands of dollars by giving you the negotiating power you need. When you leave our office, you will know exactly how much down payment you will need, how much home you can afford, and will have the confidence in knowing that your financing is already in place.
Minimum information you’ll need for your loan pre-approval
Most recent 2 years’ W2s
Most recent 3 months’ statements for checking and savings accounts
Most recent 3 months’ or quarterly statements for mutual funds, money market, stock or 401k accounts
Current paystubs covering a 30 day period
Landlord or current mortgage company names and phone numbers