Best bussiness financial advice on the net
 

Welcome to our financial advice Archive. Have fun browsing!

 

Article #144: Why Get Pre-Approved For A Mortgage?

(Browse for more articles)

 
One of the most important steps in the Here a list of documents your Mortgage
home buying process is getting Lender will want to initially see copies
Pre-Approved as early as possible. of:
The Pre-Approval process involves you - W2's from the last 2 years
speaking with a Mortgage Lender about - Tax Returns from the last 2 years
your financial situation, what you'd like - Pay stubs from the last 30 days
to accomplish, and any concerns you have. - Bank & Brokerage Statements from
Armed with that information, a Mortgage the last 3 months
Lender can obtain an approval from a Additional documentation will be required
lender up to a specified loan amount and depending on your specific situation and
provide you with monthly payment as the process progresses.
information and closing cost information. Your Mortgage Lender will go through a
There are many benefits to getting loan application with you, which covers
Pre-Approved. First, Realtors will spend questions related to your current
more time assisting you with your home residence, employment status, marital
search if they are confident you'll be status, etc. There will be a series of
able to obtain financing once you've disclosures you'll have to sign as well -
located a home you're interested in some required by the State or Federal
purchasing. Second, Seller's will take Government informing you of your rights
your offer more seriously since they know in the process.
you will be approved for a mortgage -- With the application and disclosures
and they won't risk taking their home off signed, the supporting documentation you
the market only to find out the deal is provided, and an understanding of what
going to fall through 30 days later. you are hoping to accomplish, the
Finally, since you know you've been Mortgage Lender is ready to submit your
approved and much of the paperwork has "loan" through what's called "Automated
already been processed, you're in for a Underwriting". Within minutes, unless
much less stressful experience. your situation requires an underwriter to
Why is it important to do this as early personally review your file, you will
as possible? have an answer to your loan application.
Many loan officers report that over 50% Now that you have an approval, your
of the credit reports they see have Mortgage Lender will issue a Pre-Approval
inaccurate information listed. This letter outlining the terms of your
inaccurate information could be the approval. Your Realtor will request a
difference between you getting a loan or copy of this letter (typically before
not getting a loan - getting a rate of 5% they begin showing you homes) and will
or getting a rate of 7.0%. The earlier include a copy with any offeryou make on
these errors are found, the sooner they a property.
can be corrected. Now it's time for the fun part - looking
So, what do you need for the Pre-Approval for homes!
Process?






1 - A - B - C - D - 2 - 3 - 4 - 5 - 6 - 7 - 8 - 9 - 10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 - 18 - 19 - 20 - 21 - 22 - 23 - 24 - 25 - 26 - 27 - 28 - 29 - 30 - 31 - 32 - 33 - 34 - 35 - 36 - 37 - 38 - 39 - 40 - 41 - 42 - 43 - 44 - 45 - 46 - 47 - 48 - 49 - 50 - 51 - 52 - 53 -