Prequalify for a Loan

Before you start touring properties in Northern Michigan, get prequalified or preapproved for a loan by a lender. Getting prequalified for a loan means your lender has reviewed your credit to determine if you're likely to qualify for a mortgage when you officially apply. Even if you have a long-standing relationship with a certain bank, it is to your benefit to ask various lenders what you are approved for. Each one will be different, and it is up to you to choose the best fit. We highly recommend working with a local lender. Local lenders are familiar with local real estate values. They often know your real estate agent because they are part of the same community. 

Preapprovals require an in-depth look at your finances, and are regarded as serious proof of your ability to purchase a home. When you're preapproved, you receive a letter from the lender showing you are likely to be qualified for a mortgage for a stated amount. Then, you can share this letter with your realtor to prove you are ready to make an offer.

For a preapproval, you may need:

• A full month of paycheck stubs
• Two years’ federal tax returns 
• Two months’ bank statements (be prepared to explain large deposits – it is a good idea to have documentation if you sold a vehicle or received a gift, etc.)
• A down payment
• If you make income from tips or you're self-employed, you will typically need a two-year history of income.