How to Get Mortgage Pre Approval
When it comes to buying a home, there’s not much you can do without mortgage preapproval. After all, it’s difficult to house hunt when you don’t know how much you can afford. Not to mention, any offer you put down will have less merit without a secured home loan.
Working with a knowledge industry expert from Mark Spain Real Estate helps you proactively take on the home-buying process. With years of valuable experience, our real estate professionals will help you make informed decisions as you house hunt, including applying for mortgage preapproval. With our guidance, you can compile a competitive offer and land your dream home hassle-free! Read below for our expert guide on getting mortgage preapproval before buying a home.
How to Get Mortgage Pre Approval
Assess Your Timeline
Before beginning the preapproval application process, you’ll need to assess your timeline. While getting preapproval before embarking on your house hunt can be beneficial, you also don’t want to secure it too early. Generally, mortgage preapproval letters are good for 30-60 days, depending on your most-current financial standings.
With this in mind, avoid prematurely getting preapproved and align your house hunt with your application process. Doing so will ensure your preapproval still stands when you make an offer. Not to mention, it will give you the most up-to-date snapshot of your affordability and therefore narrow down your scope of homes.
Check Credit Score and DTI Ratio
Several financial factors affect the mortgage preapproval process — two of the most important being your credit score and debt-to-income ratio. Mortgage lenders want to be confident that you can take on a mortgage loan alongside your existing debt. They’ll also want to ensure you have a strong credit history and are financially responsible. If not, they’ll likely require a larger down payment and higher interest rate on your mortgage or deny you the loan altogether.
As a buyer, we recommend checking these standings before your lender does. If your lender discovers errors while reviewing your application, this affects not only their decision to preapprove your loan but also your ability to get the best mortgage rate. As you embark on your house hunt, do your best to take care of any credit cards, installment loans, or student loans that may weigh down your finances. Doing so will better your chances of getting preapproved.
Gather Important Documentation
A mortgage preapproval application requires several necessary income, financial accounts, and personal information documents. Your job as the buyer is to supply these documents for your lender in an efficient and organized manner. Typically, a mortgage lender will ask for the following:
- Proof of income
- Employment verification
- Proof of assets
- Credit history
- Pay stubs from the past 30 days
- W-2s from the past two years
- Bank statements
- Driver’s license
- Social security number
Choose a Lender
Once your finances are in order, it’s time to choose a lender. However, don’t put all your eggs in one basket until you’ve considered all your options. Our experts recommend comparing offers from multiple mortgage lenders to get the lowest rate and fees. Surveying multiple lenders will also give you more insight into each lender’s loan process, including their variation of fees and customer service policies. You’ll receive a document with each estimate, including your predicted interest rate, monthly payment, closing costs, taxes and insurance. Make sure to examine each estimate very carefully before moving forward with one application.
Sell or Buy a Home with Mark Spain Real Estate
Are you looking to finance a home? The industry professionals at Mark Spain Real Estate are here to help you through the mortgage preapproval process. Delivering unparalleled customer satisfaction, our team of experienced listing consultants promises a seamless and stress-free home-buying experience! Check out our Guaranteed Offer Program for the potential to receive a competitive cash offer on your home in only 21 days. Contact our agents today!
Buying A Home, Selling a Home