If you are searching for a home in Houston, getting pre-approved is one of the most important steps you can take in the buying process.
Getting pre-approved for a mortgage takes some time and effort, but once you have a letter of pre-approval in your hand, sellers will take your offers more seriously.
How Long Does it Really Take?
It typically takes up to 10 business days to get pre-approved for a home loan. However, you may be able to get a pre-approval letter much quicker.
If you are properly prepared and have gathered all the requested documents, your lender may be able to present you with a letter of pre-approval on the day of your meeting.
If you have bad credit, debt, or are missing necessary documents, it may take longer for them to process your request for pre-approval. In some cases, it may take several months for your lender to pre-approve you.
How to Get Pre-Approved Quickly
There are a few things you can do to speed up the pre-approval process and increase your likelihood of getting pre-approved. First, it’s best to be completely debt-free.
The deeper you are in debt, the longer it will take to get approved. Buyers with high debt-to-income ratios may not be pre-approved at all.
Next, you’ll want to build up an emergency fund that includes three to six months’ worth of expenses. Lenders will review your bank statements, and having an emergency cushion shows you are financially responsible. This will help the pre-approval process run smoothly.
You’ll also want to have your down payment ready when you go to get pre-approved.
Finally, you’ll want to make sure you have neatly compiled all the documents requested by your lender. You will need to present documents that verify your income, identity, and assets to your lender when you meet with them.
Be honest about your financial situation and don’t try to sweep anything under the rug. That will only hinder the pre-approval process.
Documents Needed to Get Pre-Approved in Houston
When you meet with your lender, be sure to bring the following documents.
- Your driver’s license
- Social security number
- Green card if not a U.S. citizen
- Employment verification
- Pay stubs from the last month
- Proof of any additional income
- W-2 forms from the previous year
- Past two years of tax returns
- Bank statements
- Quarterly reports from all asset accounts
