How to Get a Mortgage Pre-approval

Consulting with a mortgage lender is the first step you should undertake in the home buying process. Almost all first-time buyers need a mortgage to finance their home purchase, so get prepared before you look. When you’re armed with the knowledge of what you can afford, it focuses your search and allows you to make a move quickly when you find a home you love.

WHAT IS A MORTGAGE PRE-APPROVAL?
Lenders offer borrowers either a pre-qualification letter or a pre-approval letter, but most Realtors® recommend you get a pre-approval letter before you start home shopping. A pre-qualification letter states the amount a lender thinks you’ll be able to borrow based on your income and credit profile without any actual documentation. Mortgage lending standards have tightened since the housing crisis, and all mortgage loans now require full documentation and verification of income and assets—so most sellers will only accept an offer from a buyer with a full pre-approval letter based on verified information.

Your home hunt will benefit with a pre-approval for two main reasons

First, you’ll have completed the credit check and paperwork requirements for a mortgage, so you’ll know your ability to finalize a home purchase. If the lender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer. Second, since your documentation will already be in place, a mortgage pre-approval will likely speed up the process once you make an offer.

HOW TO FIND A MORTGAGE LENDER
To help you land your dream home, contact me and I will provide you with up to three lenders I recommend.

WHAT TO EXPECT FROM YOUR MORTGAGE LENDER
The best lenders take a collaborative approach with borrowers and explain all your loan options. When your lender checks your credit report, they should also give you feedback on how to improve your credit profile. They should also offer recommendations on how to handle your money between the time you apply for a loan and settlement day. Your mortgage lender should provide advice about when to lock in your loan rate and discuss the pros and cons of various loan programs.

WHAT YOUR MORTGAGE LENDER EXPECTS FROM YOU
Your lender needs you to be honest about your finances and responsive to all requests for additional information, no matter how unimportant it may seem to you. The more cooperative you are with a lender, the easier the loan process will be.

You should be prepared with tax returns, W2s, bank statements, employer names and addresses, and your current landlord’s information. Call me today so I can help you get started.