What You’ll Learn
- See our homebuyer checklist to learn what documents and information you will need to bring with you when you meet with a Mortgage Advisor for pre-approval.
- Find out what steps you can take after you are pre-approved to help the loan-closing process go smoothly.
Getting pre-approved for your home loan is an important part of the homebuying process. It provides you with an honest assessment of the current state of your finances. You’ll also find out how much house you can realistically afford, what your down payment requirements will be, and what your future mortgage payments might look like. By taking this step up front, you can make smarter decisions when shopping for a house.
When you meet with a Salal Mortgage Advisor for pre-approval, you’ll need to bring the items below:
- Residence addresses for the past two or more calendar years.
- Names and addresses of employers for the past two or more calendar years.
- One month of most recent pay stubs.
- W2s from the past two years.
- Personal tax returns for the past two years (all pages/all schedules).
- If self-employed, business tax returns for the past two years (all pages/all schedules), copies of any 1099 and K1 forms, Year-to-Date Profit and Loss Statement and Balance Sheet.
- Two months of most recent bank, investment, and retirement account statements.
- For any properties you currently own, please provide the most recent mortgage statement, property tax statement, and homeowner’s insurance declaration page. You also will need to bring your most recent HOA Dues statement if the property is a condominium or in a planned unit development.
- Photocopy of your Permanent Resident Alien card or Visa status (If you are not a U.S. citizen).
Set up a Free Homebuyer Planning Session
Once you’ve gathered all the needed documents and information, set up a time to meet with a Salal Mortgage Advisor and take the next step in the pre-approval process.
What are my obligations if I fill out a loan application?
At Salal, there is no cost to submit a loan application or be pre-approved, and you are not obligated to the loan until closing.
Do I have to have perfect credit?
A good credit history will certainly increase the likelihood of getting the loan you want. Still, it’s only one factor in the underwriting process. You can still obtain a mortgage with less-than-perfect credit.
What is the difference between interest rate and Annual Percentage Rate (APR)?
Think of it this way: a financial institution charges you to borrow money. The interest rate is the cost of borrowing money, expressed as a percentage rate. The APR reflects the interest rate and any other fees required to finance the loan, like points and some closing fees.
What is a discount point?
Discount points are up-front fees paid to the lender at the time of closing in exchange for a reduced mortgage interest rate. This is referred to as “buying down the rate.”
What is an escrow account?
An escrow account is set up to make certain recurring payments on your behalf, like real estate taxes, property insurance, mortgage insurance and/or flood insurance. To make these payments, your lender collects escrow funds as part of your monthly mortgage payment. This arrangement is a convenient way to guarantee your bills are paid in full and on time.
How long does it typically take to close a mortgage transaction?
The time it takes to get a home loan, from your initial application till you close on your new house, depends on many factors and every homebuyer’s situation is a little different. If you’ve been approved, we work towards meeting the close date of your contract. Closings typically happen within 30 days. However, we are able to accommodate closings as short as 21 days. We encourage you to check out our free Homebuying Guide, which will tell you what items and documents you need to have ready to start the pre-approval process.
If you are already pre-approved for a loan, here are some steps you can take to make the loan-closing process run smoothly.
- Keep your financial situation consistent to help avoid financing delays.
- Keep working at your current employer.
- Stay at your current residence.
- Continue to use your credit cards as usual and stay current on payments.
- Stick with your existing bank accounts.
- Postpone buying furniture or any other major purchases, like a vehicle.
- Set aside enough money to pay for closing costs.
- Hold off on taking out a new loan or co-signing a loan for anyone.
- Provide clear documentation and a paper trail if making large withdrawals or deposits.
- Contact your mortgage advisor right away if your financial situation changes.
Questions? We have answers.
Let us know the best way to contact you and a Salal Mortgage Advisor will get back to you soon.