The first step to purchasing a home with a mortgage is getting pre-approved. Knowing what is needed and how to get pre-approved for a mortgage, can help take some of the anxiety out of purchasing a home.
What is a pre-approval?
- A pre-approval is a preliminary commitment in writing from a lender stating that a borrower will qualify for a particular loan amount, based on income and credit information under a lender’s guidelines. Most pre-approval letters are valid for 60 to 90 days.
Why should you get pre-approved?
- There are many reasons why you should get pre-approved for your mortgage early in the process of purchasing a home. The most important reason is that you will get an accurate idea of what you can afford. This will ensure that you only look at houses that are truly in your price range. A pre-approval letter is also essential in a competitive real estate market. If you make an offer on a house without a pre-approval, your offer will not be taken as seriously as an offer from another buyer with a pre-approval, and you could lose out on the house of your dreams. Additionally, most bank-owned homes require a pre-approval letter from a lender before accepting an offer.
How long does it take to get per-approved?
- To obtain a pre-approval letter, you will need to contact a lender. typically, the pre-approval process takes 24 to 48 hours.
How much does it cost to get pre-approved?
With our lenders …. It’s FREE!!
What if you can’t get pre-approved?
- Correct any errors on your credit report. A potential lender will look at your credit score and analyze your credit report for red flags such as late or missed payments, or charged off debt. Your credit score affects your ability to qualify for a loan, and determines what kind of rate you can get. Generally, a score above 680 will get you the most favorable mortgage rates.
- Decrease your overall debt and improve your debt-to-income ratio. In general, a debt-to-income ratio of 36 percent or less is preferable and 43 percent is the maximum ratio allowed. use the debt-to-income calculator to determine your ratio.
- Join my Facebook Down Payment Assistant Page
Suggested Mortgage Lenders: