After enlisting the help of a Realtor for professional advice, the next step is to get pre-approved by a mortgage provider. This is vital, as any offer must include your financing status and a pre-approval letter will make it more competitive. Additionally, it’s important to gain clarity on your payment and interest rate so you feel comfortable with them.

Choosing the right mortgage lender is essential for ensuring a smooth transaction. The wrong choice can lead to delays and higher interest rates, potentially causing you to miss out on the property altogether if the lender fails during underwriting. Taking time to research and select a reliable mortgage lender is critical for securing your desired property at a fair rate.

Paperwork You Need To Gather

When applying for a pre-approval, lenders generally require quite a few documents. These may include proof of identity, W2’s, proof of income, recent bank statements and tax returns. Additionally, you may need to provide the lender with information about your current debts and assets. By having all the necessary documentation prepared ahead of time, you can make the preapproval process go more smoothly and quickly.

Here are some examples:

Once you provide the necessary documents to your lender, you can expect to receive a pre-approval letter within two to three working days. Although the lender may require additional paperwork due to stricter underwriting rules implemented after the housing market crisis, this is not an indication of difficulty. Your pre-approval letter will specify how much you are able to afford for a house; therefore, it is recommended that you contact your lender and ask what that amount translates into in terms of monthly mortgage payments, PMI (Private Mortgage Insurance), taxes and insurance fees.

When you’re ready to make an offer, have your pre-approval letter sent to us for review. Once you feel comfortable with the amount of your monthly housing payment, you may also want to consider taking advantage of the grant programs offered by Oregon which provide free funds for down payments and closing costs. Check with us to see if you qualify.

Within three days of being pre-approved for a loan, lenders must provide you with a Loan Estimate (LE) document. This document outlines the closing costs associated with the loan, as well as your down payment. It is important to understand these fees, which are typically estimated to be around 2.5% of the purchase price of the property. Knowing this information will help you plan and budget for your loan properly so that you can make an informed decision about your financing options.

It is essential to compare mortgage loans from multiple lenders. Doing so will enable you to get the best deal on fees and interest rates. At closing, you must have the funds for your down payment (generally 20% of the purchase price) as well as additional money for closing costs. For example, if you’re buying a $500,000 property and putting down 20%, then you’ll need $112,500 ($100,000 for your down payment plus approximately $12,500 for closing costs). Please note that appraisal and inspection fees must be paid on the day those services occur.

For the most accurate pre-approval letter, it’s best to have all the lenders check your credit at generally the same time. (If you apply within 2 weeks to multiple lenders there is no additional strike on your score.) This way, they can review your credit report on the same day or within one day of each other, minimizing any potential impact. Additionally, when comparing interest rates from different lenders, make sure you do so at the same moment since rates can fluctuate throughout a single day.

If you have any queries regarding pre-approval process, please do not hesitate to reach out to us @503 288 3979, or email: letstalk(at)

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