Why should you get pre-approved for a mortgage loan? If you're a first-time home buyer in Maine, getting pre-approved for a mortgage is an essential step in the home buying process. It can help you secure your dream home by giving you greater negotiating power with sellers. In today's digital age, you can even apply for a pre-approval online.
Here are some tips on how to get pre-approved for a mortgage as a first-time home buyer in Maine:
1. Determine your home buying goals. Review your finances and start creating a home buying budget. Online budget calculators can help you determine how much home you can afford. A reputable mortgage lender will help you determine your purchase price range and loan options.
2.Contact a mortgage lender before applying. A mortgage lender will review your home financing options, including programs for first-time home buyers. During the preapproval, a mortgage lender will look at your:
- credit score
- debt-to-income (DTI) ratio,
- income and employment history,
- down payment options and other factors
3. Gather your financial information: Before applying for pre-approval, gather all your financial information. Being prepared with the necessary documentation will make the pre-approval process smoother. Below is a general list of documents you'll need for pre-approval. (For easy reference, you can also download our Pre-Approval Checklist).
- Employer(s) name, address, and phone number for the past two years
- W-2s for the past two years
- Pay stubs covering wages for the most recent 30-day period
- If self-employed, personal and business tax returns (if applicable) for the most recent two years, signed and dated, with all schedules attached
- Previous two statements for all deposit accounts—checking, savings, investment, IRA, etc.
- If you rent, the landlord’s name and address for the past two years.
4. Apply for pre-approval online: KFS Mortgage Company offers an online pre-approval tool to help make the process easier. You can conveniently complete the application process from the comfort of your own home.
5. After you begin the mortgage application process, your lender may request additional information. Once you’re pre-approved, we’ll give you a pre-approval letter to use in your home-buying negotiations. Then, you can focus on shopping for your home and be ready to make an offer when you find your dream home.
Getting pre-approved for a mortgage as a first-time home buyer is a crucial step in the home buying process. Choosing a helpful mortgage lender in Maine, like KFS Mortgage Company, can make the process smoother and more efficient. Our experienced mortgage team will help guide you through the entire process from start to finish and help you identify the best mortgage option for you. We’ll help you determine your financial strategy, mortgage amount, and purchase price. To schedule a free no-obligation consultation, contact KFS Mortgage Company today.
KFS Mortgage Company, Experience, Trust, Peace of Mind.
KFS Mortgage Company, 207-873-5153, www.kfshomeloan.com
NMLS #2097505, Maine NLC2312503, Equal Housing Lender