Getting pre-approved for your home loan is what many consider to be the scariest part of the whole home buying process. Put those fears away, it’s quite simple. Ask your New Orleans real estate agent to provide you with some local lender options. You’re going to need more than just your social security number.
Will this hurt my credit score?
Nope. Unlike buying a car, your lender only pulls your credit once. You can shop the interest rate around and have a few lenders look at your credit and still be fine. We would suggest not letting more than 3 lenders access your credit report and only do this within a 10 day period.
What other documents do I need?
While your New Orleans mortgage lender can pre-approve you with just your SSN and what you tell them you make per year. You’re going to have to put up the proof. Start gathering your last two years of W-2s, last two years of tax returns, a full month of pay stubs, 2 recent bank statements, a copy of your valid I.D., and most recent statement of other assets.
What if I’m self-employed?
It’s cool. Self-employed New Orleanians can buy homes too! Get those documents stated above along with 2 years of your business tax returns including statements and schedules, including your K-1 statements.
How do they determine my interest rate?
Interest rates will be determined by your credit score, loan type, and if you’re using any down payment assistance programs. Interest rates vary by the day, so depending on when Lender A looks at your credit and Lender B a few days later – those rates can be different. If you really like a lender, but they have a higher interest rate, ask them to match the rate offered by another one.
What type of loan is best for me?
You and your New Orleans lender will discuss all your options and then decide what is the best route for you.
What types of loans are out there?
Conventional loans, VA loans for veterans, FHA loans, USDA Rural financing, Home Style, Portfolio loans, Physicians loans, etc.
Not everyone fits into the same box, so there are plenty of options for you.
What if I need help with my down payment?
Only your mortgage can tell you if you qualify for down payment assistance and what program is best for you. But, most of these helpful programs are only accessible if you commit to a lender who works locally.
One of the most important things to know: you can’t make an offer on a house without getting pre-approved first. Also, you don’t want to fall in love with a house and find out you can’t afford it!
If you’re ready to purchase your New Orleans home, send a message below or text us for a faster response!