At Progressive Urban Real Estate, we feel it is important when buying a home that several measures are taken before beginning the search. As the next step in our 5 Steps to Home Ownership, here is a list of steps to follow when getting pre-approval for purchasing a home. We also will provide you with some tips and tricks for getting the best rate and improve your chances of getting pre-approved.

• Speak with lenders for pre-approval. Start researching lenders and reaching out for rates. Ask your Progressive Urban Realtor if they can give you lender recommendations for the type of property and area that you are looking.   
• Compare interest rates and fees. Small differences in interest rates offered by lenders can make a significant difference in the amount that you pay over the life of the loan.  Lender fees and closing costs should also be factored into your decision. Make sure to ask if your loan will require mortgage insurance, what that will cost per month and if there is a way to avoid it.  
• Look for lenders with special programs. First Time Home-buyer loans, zero percent down payment loans, lender contributions toward closing costs or local programs such as the Greater Circle Living; an employer assisted housing program created to encourage eligible employees of University Circle institutions to live near work which give grants for employees who purchase, rent, or repair homes in the target area.
• Get your documents together. Lenders will check your income, assets, debts and credit history to see whether you should be preapproved for a mortgage. Here is what you need for preapproval:
• W-2 forms from your employer for the previous two years
• Current pay stubs
• Federal income tax returns for the previous two years
• Bank statements for the previous two months
• Identification, such as a driver's license

Progressive Urban's Professional Tips and Tricks

Just because you receive a pre-approval from one lender does not mean that you need to use that lender for your loan.  If you find a program that better fits your needs then switching to another lender may be the best route to take.

How to improve your chances of getting preapproved:

• Fix errors on your credit report
• Pay down debt
• Pad your savings account

Have questions or need guidance with choosing your mortgage lender? Ask your Realtor! The Realtors at Progressive Urban are more than happy to help you.