Mortgage Pre Approval
A
pre-approved mortgage is a must in a competitive housing market. It also gives
you an idea of what you can afford to buy as you look at houses. Online home
loan lenders allow you to compare rates and quickly complete the process.
Before You Apply
Before you apply for a pre-approved
mortgage, you will want to make sure all your financial records are in order.
This is a good time to get a copy of your credit report and check it for any
errors.
You should also determine how much of a
down payment you plan on putting down. If you have good credit, you can get away
with 0% down. However, in order to avoid private mortgage insurance, you will
need to put down at least 20%.
Look For A Lender
Online mortgage lenders provide more
options for financing the purchase of a home. You can quickly scan rates and
fees by providing basic information about the loan amount and your income level.
These general quotes will not be your final rate since there are many more
factors that determine a mortgage financing package, but it is a quick way to
find competitive lenders.
Apply For A Home Loan
A pre-approved mortgage is basically just
having the application of a home loan completed. With a completed application,
your mortgage lender will tell you the maximum amount you qualify to borrow.
When you actually purchase your home, you will finalize the paperwork and lock
in your rates.
You can fill out your home loan
application online, saving you time. Over a secure connection, you provide
detailed information about yourself. To quickly find your financial information,
use last year’s IRS forms or your bank statements.
Find Your Home
Once your application is approved, you can
make serious offers on homes you would like to buy. Take a copy of your
pre-approved loan with you when you look at homes. An offer with a pre-approved
mortgage will sometimes be snapped up over just a regular offer.
With your offer on the table, you can finish
the mortgage loan paperwork and lock in your rate.
Mortgage Glossary7
