A pre-approval indicates that a lender has taken a detailed look into your financial background and has committed to lend you a certain amount of money, pending specific property details and verification of financial details. Because pre-approval entails a credit check and a review of supporting documentation, it’s more powerful than a pre-qualification letter, which generally only estimates what you can afford based on information you have provided.

ADVANTAGES OF BEING PRE-APPROVED:

Pre-approval offers a number of advantages over waiting to apply for a mortgage until after you have found a home. It entitles you to:

1. Shop for a home with the confidence of knowing you are conditionally approved for the price range for whichyou are looking.

2. Take advantage of the preference most home sellers have for pre-approved buyers. With a pre-approval,sellers know they have a conditionally-approved buyer qualified to purchase their home. This often will giveyou an advantage over an unapproved buyer when more than one contract is presented.

3. Strengthen your negotiating position.

4. Allow your sales associate to structure the financing portion of the contract based on your financial needs.

5. Obtain a quicker closing date.

6. Discover possible qualification issues early in the home buying process, minimizing last minute surprises.

When searching for a new home, the last thing you want to be concerned with is the financing. A pre-approval helps remove much of the stress and anxiety during the home buying process by giving you the confidence that the financing will be in place.

PRE-APPROVAL VS. PRE-QUALIFICATION

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Laila Porter Office: 404-240-2725

INCOME � W-2 forms from the last two years

� Federal tax returns, all pages, for the past two years for self-employed or commissioned income sources

� A copy of the lease agreement(s) for rental property

� A complete copy of the divorce settlement agreement (if using income to qualify)

� Year-to-date pay stub

� Pension/Social Security: Current year award letter. Copy of most recent check or, if direct deposit,a copy of the most recent bank statement showing receipt of funds

� Self-employed: Year-to-date Profit & Loss Statement

� Self-employed: Corporate/Partnership Tax returns for the past two years

ASSETS � The two most recent bank/brokerage statements, all pages, for all accounts

LIABILITIES � Credit card account numbers, lender’s name, balances and minimum payments

� Car loan: Lender’s name, account number, payment and balance

� Mortgage loans: Lender’s name, account number, payment and balance for each loan

� Landlord’s name, address and telephone number dating back two years

� Complete copy of divorce/settlement agreement

OTHER ITEMS � Application fee

� A copy of the fully executed contract on your home

� A copy of the relocation agreement (if applicable)

� Alimony/Child Support/Note Income. Copy of note receivable or divorce decree/paternity award.Six months cancelled checks or deposit slips showing receipt*(to use income to qualify, it must continue for a minimum of three years)

* Alimony, child support, or separate maintenance income need not be revealed if the borrower or co-borrower does not choose to haveit considered for repaying the loan.

DOCUMENTS REQUIRED FOR LOAN APPLICATION*

Information provided byLaila Porter Office: 404-240-2725

THE HOME BUYING PROCESS

We will guide you through each step of the purchase of your new home.

Meet with your Prosperity Mortgage Consultant to discuss the approval process

Determine your home criteria

Start the home search & viewing process

Contingencies

RemovedMake the offer

Negotiations

& Contract

AcceptanceProvide additional

documentation to finalize the loan approval

Due Diligence Period(Home Inspections & Survey;

Financing & Appraisal Contingencies)

Loan Approva

l

Order

Homeowners

Insurance

Schedule utilities to be turned on

Final walk-through

Procure certified check or wire funds for closing

CLOSING!

MOVING DAY!

Get pre-approved

for your home

mortgage

Determine price

range and time

frame

Review Buying Process with

your HNR Associate

Laila Porter Office: 404-240-2725