GETTING PRE-APPROVED FOR A MORTGAGE LOAN
One of the most important steps in the home buying process is getting pre-approved for a mortgage. Pre-approval is a process in which a lender evaluates your financial situation and determines how much you are able to borrow for a home. This is an important step to take before you start looking for a home, as it can help you determine your budget and give you a better idea of what you can afford. It can also make you a more attractive buyer to sellers, as it shows that you are serious about purchasing a home and have taken the necessary steps to secure financing.
So, how do you go about getting pre-approved for a mortgage? Here are a few steps to follow:
Interview multiple lenders.
Not only do interest rates vary among lenders, but so do fees, loan terms, and customer service. By comparing offers from multiple lenders, you’ll be able to make an informed decision and potentially save thousands of dollars over the life of your loan. When you’re ready to start interviewing lenders, make sure to ask about interest rates, fees, and loan terms. You should also inquire about the lender’s customer service and reputation. Once you have chosen a lender, you’ll need to complete a mortgage application. This is a detailed form that asks for information about your financial situation, including your income, debts, and assets. It’s important to be honest and accurate on your application, as this can affect your ability to get approved for a mortgage.By taking the time to interview multiple lenders, you’ll be able to find the best deal on your mortgage and feel confident in your decision. Renew Real Estate Group has worked with many lenders throughout the Treasure Valley, and we continually keep going back to David Morbley from Academy Mortgage. Learn more about him and what others have to say!
Gather all of your financial documents.
In order to get pre-approved for a mortgage, you’ll need to provide your lender with a variety of financial documents. There are several ways home buyers can come prepared with the necessary documents to get pre-approved for a mortgage loan:
- Tax returns: Home buyers should have their most recent tax returns on hand, as well as any relevant tax documents such as W-2s or 1099s.
- Pay stubs: Lenders will typically require proof of income, such as pay stubs or bank statements. It’s a good idea to have at least 3 months of pay stubs on hand.
- Bank statements: Home buyers will need to provide recent bank statements to show their assets and savings. It’s a good idea to have at least 3 months of bank statements on hand.
- Identification: Home buyers will need to provide a government-issued ID, such as a driver’s license or passport, to verify their identity.
- Employment verification: Lenders will typically require proof of employment, such as a letter from an employer or a pay stub.
- Credit report: Home buyers should obtain a copy of their credit report and bring it with them when they meet with a lender. This will help them understand their credit standing and any potential issues that may need to be addressed.
- Proof of other income: If home buyers have other sources of income, such as rental income or investment income, they should be prepared to provide documentation of that income as well.
Waiting and recieving approval
After you have submitted your mortgage application, you’ll need to wait for approval. This process can take anywhere from a few days to a few weeks, depending on the lender and the complexity of your financial situation. It’s a good idea to be patient and not get discouraged if it takes longer than you expected. Once you have been approved for a mortgage, you’ll receive a pre-approval letter from the lender. This letter will outline the terms of the loan, including the amount you are approved to borrow, the interest rate, and the length of the loan. It’s important to review the letter carefully and make sure that you understand all of the terms and conditions of the loan.
Getting pre-approved for a mortgage is an important step in the home buying process, as it can help you determine your budget and make you a more attractive buyer to sellers. We at Renew Real Estate Group work with David Moberly at Academy Mortgage right here in Meridian! At Academy Mortgage, they believe that the American dream is built upon sustainable homeownership and they exist to make homeownership a reality for as many people as possible. Check out our preferred lender, interview them, and see if they are a good fit for your home buying experience.