Get Pre-Approved for Your Mortgage

If you’re thinking of buying a home, your first step is to get pre-approved.

Buying a home will almost always be a complicated process, but there are a few simple steps that you can take to ensure that this major financial decision goes as smoothly as possible.

Understanding the Pre-Approval Process

Many people start looking at homes before they are approved for a loan, and that is a mistake in most situations. When you get pre-approved for a loan, the lender is going to take a look at your income and credit score before determining the size of the loan that you can be approved for. After the approval has been finalized, you will know exactly how much you can spend on your new home and what your interest rates are going to be like.

Benefits of Getting Pre-Approved for a Mortgage

Tackle Credit Issues: No one wants to find the home of their dreams only to realize that their credit score is too low or they have blemishes on their record. Getting pre-approved for a mortgage will allow you to take care of those issues early on.

Shop With Confidence: Once you have been pre-approved, you will know exactly what your budget is when you are looking for a new home. That will allow you to narrow down your choices and only look at properties that you know you can afford.

A Bartering Tool: Many first-time buyers don’t realize that getting pre-approved for a loan can be a bartering tool as well. Sellers will take your offer very seriously if you have already been approved by a lending institution.

Lending Requirements

In order to get pre-approved for a mortgage, the lender will need to collect quite a bit of information regarding your finances. That includes your income history, your current level of debt, and any issues that can be found in your credit history. We must also discuss how large of a down payment you will be able to put down on the home. If your credit score is low or your income fluctuates, then the lenders might ask for a larger down payment.

What to Expect

Our goal is to make this process as stress-free as possible for our clients, and that is why we try to put in as much of the legwork as possible. When we have our first consultation, we will go over all of the variables that could affect your home loan.

Taking the Next Step

Getting pre-approved will speed this process up and make the search for a new home much less stressful. We invite you to contact us today to schedule a no-obligation consultation where we can discuss the pros and cons of this mortgage product.