Page 4 - Butterfly Realty LLC

Obtain Pre-approval

It is recommended that buyers get pre-approved before beginning their home search. Why, you may
ask. Knowing exactly how much you can comfortably spend on a home reduces the potential frustration
of looking at homes beyond your means.

Loan Application

Borrower can apply online and/or communicate through email and phone. Many industries handle
transactions electronically and you will find that most lenders will direct you to the online application to
begin your pre approval process.
A. Complete Application
B. Buyer provides pertinent documentation
1. Driver’s License and social security card
2. Last 30 days of pay stubs
3. Last 2 years W-2s/1099s
4. Last 2 years tax returns (all pages & schedules)
5. Last 2 months bank statements (all pages)
6. Most recent asset account statements (401k, IRA, CD, etc.)
7. Divorce decree (if applicable)
C. Credit report is requested

Pre-qualification vs. Pre-approval

As you do your online research, you may read the term mortgage pre-qualification. It is not the same as
pre-approval, and it’s important to know the difference.

A pre-qualification is a less meaningful measure of a person’s actual ability to get a loan. It is a
lightweight “at a glance” look at a borrower’s credit and capacity to repay a mortgage. It’s usually
determined by a loan officer asking a potential borrower a few basic questions but there is not a third-
party verification of the borrower’s information