EPHRATA – The housing inventory in the Columbia Basin is tight, but preparing ahead of time can make the process of buying one of the homes that is available a lot easier.

“The starting point is to find a lender that they trust and get a pre-approval through the lender,” said Staci Faw of Windermere REal Estate/Central Basin, LLC. “Because without having a pre-approval, they don’t know what their buying power is.”

Sitting down to get that pre-approval is a bit like doing homework, but can be simpler if the person applying for a mortgage loan has all of their ducks in a row, said Scott Adams, a broker and agent with the Windermere office and Faw’s coworker. He and Faw recommended ensuring applicants have pay stubs for the prior two years, W2 forms, two months of bank statements, their social security numbers and documents showing their work history available prior to sitting down to fill out an online mortgage application.

“Documents showing they worked in the same field for the last few years would be ideal,” Adams said.

Faw said lenders will generally help guide buyers through the application and underwriting process. Being patient and prepared to provide additional documents through the underwriting process can help ease frustrations and make the process easier, she said. Additionally, they can advise whether or not it’s best to pay off a debt like a vehicle note prior to applying or allowing that debt to stand as a good credit data point, as well as similar scenarios.

The pre-approval letter provided by the lender is one of the most vital documents a buyer should have prior to contacting a real estate agent, Faw said. It helps the agent know their client’s buying power and possible conditions of a loan. The buyer should also ask about conditions of the mortgage such as potential properties needing to be in serviceable condition for a Veterans Affairs-backed mortgage. There is a large variety of loan types with different requirements.

“There’s different loan types for different types of houses,” she said.

Faw said some people may question whether to leap into the process when interest rates are higher than they have been the last few years. However, she said the timing may be right to do so, provided the buyer keep in mind that refinancing if rates drop may be a good idea.

Rates aren’t always predictable, Adams said, but multiple lenders in the area have programs established wherein buyers who refinance within a short time of buying the home can get credits toward that refinance. Asking lenders about those programs ahead of time is important for buyers to consider before settling on a lender.

Once that pre-approval is in-hand though, a real estate agent can help navigate the rest of the process, Faw said. When they see the pre-approval, they can then have an idea of the conditions of the loan and contact the lender for any clarifications that may be needed.

“We have conversations with the lenders, you know, when (clients) give us the pre-approval letter,” she said. “We’re going to call that lender and we’re going to ask questions about that buyer specifically.”

It’s that letter that really facilitates communication and expectations for those involved in the process, she said.

“Really, the pre-approval is where it’s at,” Faw said.

R. Hans “Rob” Miller may be reached at [email protected]. If you have a story idea for our Homes section, reach out to him at that address with the subject line “Homes Idea.”