Getting Pre-Approved Before You Search for Homes

The first step when it comes to your mortgage is to get a pre-approval first because this will determine how much buying power you have. When you get pre-approved, you’ll have a specific amount you can stick to, which will make the search for houses in Hawaii so much easier. That way, you’ll save time looking only at homes you can afford.

Moreover, pre-approval is an excellent way to put together a plan, especially if you’re not sure whether or not you can qualify for a loan. Remember to speak to a mortgage professional to identify challenges that you may face before purchasing a house. With the experts at HI Velocity Mortgage, you will experience exceptional customer service at every step of the mortgage process!

A pre-approval will also help strengthen your offer. It is common for the house seller to receive similar offers from qualified buyers. In this case, the seller and their realtor need to decide which offer you should accept. They also strongly consider the “strength” of the buyer, in which case, a realtor will consider the buyer with a pre-approval letter much stronger than a buyer with a pre-qualification letter.

Keep in mind that a pre-qualification letter indicates that the borrower has a loan application and allows the lender to pull their credit. In this case, the borrower will be given a ballpark estimate of the mortgage amount they can qualify for. On the other hand, a pre-approval requires documentation, which is a more accurate depiction of their financial capability.

Here are the documents you need to get pre-approved:

1. Social security numbers
2. Driver’s license or other ID photos
3. Home address for the past two years
4. Paycheck stubs for the last 30 days
5. W-2s and Personal Tax Returns for the previous two years
6. Employment information for the past two years
7. Social Security or retirement benefit award letters
8. Bank statements for the past two months
9. Source of any non-payroll deposits
10. Balances for savings, checking, retirement, and asset accounts
11. Property addresses for owned real estate
12. Mortgage loan statements for all applications
13. Other insurance and HOA statements for all properties
14. Copy of bankruptcy filing and discharge
15. Purchase property information with the sales contract and addendums

Choose A Reputable Local Lender

Hawaii is a unique and wonderful place to buy a home—there are properties in lava zones, condo properties, and agricultural ones. By sticking to an experienced local lender, you will be mindful of the possible red flags and how to address these issues. You will also know which loan programs and lenders will approve loans for these special types of properties.

Your O’ahu Mortgage Broker HI Velocity Mortgage

Getting a mortgage to live in Hawaii can be a long process, but help is always available. Aside from knowing the key points mentioned above, you will surely benefit from working with a mortgage broker on O’ahu to help you through the process.

Are you looking for a trustedmortgage broker on O'ahu? At HI Velocity Mortgage, we strive to simplify the mortgage process that is aligned to your financial goals. Get in touch with us today at (808) 727-1055 to see how we can help you purchase your dream home!