House shopping is the fun part. But the best first step happens before you tour a single home: getting pre-approved. In the Mat-Su, good homes can get multiple offers, and being ready to write an offer quickly can make all the difference.
Pre-qualified vs. pre-approved
Pre-qualified means a lender has given you an estimate based on what you've told them. They may or may not check your credit, and they don't verify documents. It's a helpful starting point, but it doesn't carry much weight with sellers.
Pre-approved means the lender has pulled your credit and verified your income and assets. A pre-approval letter tells a seller your offer is serious and that you can actually close.
Which loan is right for you?
- Conventional: the most common home loan. Down payments typically run 3–20%, with mortgage insurance if you put down less than 20%.
- FHA: popular with first-time buyers and more flexible on credit, with down payments starting around 3.5%.
- VA: for eligible veterans, spouses and reservists, often with no down payment and no monthly mortgage insurance. A great fit for military families near JBER.
- USDA: for designated rural areas, which covers much of the Valley, often with no down payment.
Requirements vary by lender, so ask each one what you qualify for.
Questions to ask lenders
- Which types of home loans do you offer?
- What will my interest rate and APR be?
- Do I qualify for any special programs or discounts?
- What closing costs should I expect?
- What's your average processing time?
Documents to gather
- Tax returns and W-2s from the last 2 years
- Pay stubs from the last 2 months
- Your 2 most recent bank statements, plus retirement or investment statements
- Photo ID and Social Security card
- Addresses for the last 2–5 years
Once you're approved, hold steady
Until you close, don't buy or lease a car, change jobs, miss a payment, open new credit, move money around or make a major purchase. Lenders re-check your credit before closing, and any of these can put your loan at risk.
Ready to get started? See my trusted local lenders or reach out and I'll help you build a plan.