New Housing Demand Expected to Increase in 2014 Mortgage Pre-Approval Important First Step
New home sales will jump to 680,000 in 2014, from 430,000 this year, according to Moody’s Analytics' forecast. This is good news for home buyers as there should be additional housing inventory added to the market. The lack of inventory has added to the double digit price gains seen throughout the market in 2013. The S&P Case-Shiller Index is up 13% this year.
Obtaining a mortgage pre-approval remains a crucial first step to any new home purchase. A complete pre-approval should include a review of credit, income and assets. Many lenders will issue a pre-approval without checking your pay stubs, tax returns and asset information. This is not much more than a pre-qualification and you should not relay on this when making a home buying decision.
Below is a list of documents that you should provide to your lender to obtain a complete pre-approval:
- Last two pay stubs
- W2s and federal tax returns for the last two years
- Most recent bank and investment statements (all pages)
- Copy of sales contract (if applicable)
By taking a little more time up front when applying for your mortgage pre-approval, you will have a better understanding of what you can afford and will eliminate any surprises down the road.
For a mortgage pre-approval in Illinois, Indiana, Michigan, Minnesota,
Wisconsin and Florida, contact United Home Loans today.