Tips for Getting Pre-Approved for a Mortgage in Cupertino

With a constant stream of new lending guidelines, volatile mortgage rates and tightening regulations from Washington, real estate agents are hesitant to show properties to Cupertino first time home buyers if they are not pre-approved for mortgage financing. With the Cupertino real estate market heating up, real estate agents need to know you are ready to go if your offer is accepted on a home.

If you are a first time home buyer and thinking of buying a home in the next 3-6 months, one of the first things you should do is to get pre-approved for a home purchase loan.

A pre-approval letter is beneficial in four main ways:

1. It helps you find out how much loan you can qualify for.
2. You would find out what your housing payment would be.
3. It tells a real estate agent that you qualify for a certain loan amount and thus worthy of their time to show different properties in that price range.
4. A strong pre-approval letter submitted with your offer on a house, makes the seller more confident about your ability to complete your end of the agreement.

It's obviously a great idea to get your paperwork ahead of time, so that the pre-approval process is thorough and smooth. Which brings us to the question—what documents are required to get pre-approved for the purchase of a Cupertino house?

Common documents required for mortgage pre-approval:

If you are a Wage Earner:

• 2 most recent pay stubs
• 2 most recent W2s
• 2 most recent bank statements and other asset documentation like 401k, IRA, stocks etc.

If you area Self-Employed:

• Last 2 year's Federal Tax Returns 
• Last quarter's Profit and Loss statement (P&L)
• 2 most recent bank statements and other asset documentation like 401k, IRA, Stocks etc.

Additionally, be prepared to explain any decline in income, job gaps, any large deposits in your bank account, your residency status in the country, any derogatory account on your credit, etc. There may be more documents or information required depending on your situation.

Finally, make sure to learn more about the Loan Officer or mortgage lender before trusting your pre-approval with him/her. A quick search on consumer review sites like Yelp and Google Places could be a good place to start. You can also ask for credentials directly from the Loan Officer. You would like to work with someone who has high customer ratings, is on top of changing guidelines, has competitive rates and can be considered an expert.

For more information, please feel free to contact me at 408-615-0655 or Shashank@ArcusLending.com

Other Resources:

• Download the free ebook - How to buy your first home in the Bay Area