Step 2: Obtain a Mortgage Pre-Approval Letter
Once you’ve found a Realtor, the next step to buying a home is to get pre-approved by a mortgage lender. It is important for you to understand how much you can afford, what interest rate you qualify for, and how much you might expect to pay each month in payments. A responsible Realtor will not put in an offer on a home until the client has been pre-approved.
It is extremely important to use a good mortgage lender (local is preferred) to ensure a smooth transaction and decrease potential problems with your financing.
Omaha Home Equity Group Recommended Lenders: Please note, we do not recive any compensation from the lenders below. We refer these folks because they have the same cutomer service and attention to detail that we do.
Mortgage Specialists, LLC
First National Bank of Omaha
Senior Loan Originator
1. Paperwork You Need To Gather
A completed application. The lender will provide this to you.
The two most recent months (or a quarterly statement) of any asset information listed on the application. Generally: checking, savings, 401k, mutual funds, individual stock accounts, IRA’s, etc.
Most recent month’s pay stubs
Past two year’s W2 forms
Past two year’s U.S. Tax Returns
Corporate Tax Returns (if applicable)
IMPORTANT: Always deliver documents to your lender in a timely manner or you could cause a
delay in closing.
2. Obtaining a Pre-Approval Letter
Once you submit your paperwork, you should receive a pre-approval letter within 1-2 business days.
Ask your lender to show you what that pre-approval amounts to (in terms of a monthly mortgage payment plus any private mortgage insurance, taxes, and home insurance).
Once you’ve received your pre-approval letter, forward it to us for your file.
3. Obtain a Loan Estimate and Understand Your Closing Costs
Within three days of receiving your pre-approval, mortgage lenders are required to provide you with a Loan Estimate (LE) which provides an estimate of the closing costs and fees your mortgage lender will charge you.
Generally, closing costs and prepaids total approximately 3.5%-4% of the purchase price of the property. This amount will be due at closing in addition to your down payment. We can also ask the seller to pay costs on your behalf at closing.
Questions? Feel free to contact us at 402-415-4799 or email us at email@example.com