How to Get Pre-Approved for a Home Mortgage Loan

There’s a challenging competition in home buying. If you don’t have the documents that prove your trustworthiness as a buyer, you will be dropped from the list and end up not winning the game. That’s why getting pre-approved for a home loan is important to increase your appeal to home buyers. It’s like opening the door towards purchasing the home that you deserve.

The pre-approval process takes place once you have decided to entrust the lenders to take a close look on your information for evaluation. They will check your credit score and income records to verify if you qualify for a loan. Once you pass that, they will then grant you a pre-approval letter which tells you that you are eligible for the loan you applied for. After which, you can now make a purchase offer with a realtor and submit necessary documents such as the purchase agreement, proof of employment, social security number, credit information and bank account.

What Does Pre-Approval Mean?

Pre-approval means the lender is giving their trust and confidence in you that you deserve to purchase a home because of your ability to make necessary payments such as the down payment and monthly mortgage on top of your regular expenses. Although, your property still needs an appraisal to ensure that its value offers sufficient collateral amount equal or more than the purchase home.

What are the steps you need for a mortgage pre-approval?

As mentioned above, one of the important pre- qualifying requirements is your credit score. At this point, you will know what kind of loans you may qualify for and how you can settle issues on the report before buying a home.

What is the importance of getting Pre-Approved?

When the time comes that you’re ready to purchase a home, both your real estate agent and seller will ask to see your pre-approval letter. As mentioned previously, it’s the key towards purchasing a home. The document proves that you are capable and eligible to make a down payment and pay monthly mortgage. There is a high competition in the housing market and sellers prioritize pre-approved buyers because it’s easier to close the deal.

What are the stages of Mortgage Loan Application?

There are three basic stages of Mortgage Loan process that you need to understand and undergo before you get successfully approved.

The process of getting a pre-approval for your mortgage loan is crucial. Even if you have sworn to have provided all truth in your word and background, having substantial documents of your dependability increases the appeal of your purchase offer for most sellers.