Today, Michelle from New American Funding will discuss both rates and what items you’ll need in order to get pre-approved to purchase a home.

Today I have with me a special guest, Michelle from New American Funding, to talk about rates and the items you’ll need in order to get pre-approved.

Michelle, how are the rates?

The rates are good! I feel like every time I’m here, I’m always talking about how rates should be going up, but we’re still not seeing that. Rates are still trending in the mid-to-low fours. For a buyer right now, it’s amazing to say that we’re almost to the end of 2017 and rates aren’t in the 5% range as was predicted.

I don’t know if we’re going to see a drop into the low threes like I know everybody wants, but take advantage of the fact that we’re still in the fours. A first-time homebuyer with good credit can still get a really good rate right now.

“The standard deduction has increased to $12,000.”

What items will a potential buyer need in order to get pre-approved?

Basically, we’re going to require your first-born and a blood sample.

I’m kidding! But it does feel very, very intrusive. The reason is that we are now in a mortgage arena that we have to document every piece of information that is relevant to your file. We’re looking at your income, your assets, and any properties you may own. We’re going to need pay stubs, tax returns, and similar documents to make sure that you can qualify to pay the mortgage, and we need to check your bank statements to make sure you have the funds available.

A lot of people confuse pre-approval with pre-qualification. Pre-qualification is essentially where you tell someone your information and that’s it. They don’t verify it. A seller and their listing agent will need to know that I’ve verified everything the buyer has given me and that I’m not just saying, “Okay, let’s go!”

We want you to understand that we’re here every step of the way, and we’re going to ask you these questions and collect this documentation so that you are a truly qualified buyer and you’re ready to go.

If you have any questions about buying, selling, or getting pre-approved, feel free to contact us. We’d love to help you.