Pre-Approval Steps for a Real Estate Home Loan

If you’re thinking about taking the plunge into homeownership, before you even start looking, talk to a qualified mortgage professional to get pre-approved for a home loan. Armed with that information, you can make better decisions on the type of real estate you can afford to buy.

Follow these steps to get pre-approved for a mortgage:

1. Get referrals. Ask family, friends, neighbors and your real estate agent for referrals to a lender with whom they have had a good experience. Talk to several lenders to compare service, rates and other options.
2. Review your credit report. If anything unexpected appears on your report, do what you can to resolve the issues before you apply for pre-approval.  Lenders will review your credit report before pre-approving you for a home loan.
3. Provide financial information to the lender. This usually includes documentation of your income, recent statements for all your checking and savings accounts, assets and debt (for instance, credit card debt and car payments).

Even though the pre-approval process is rigorous, obtaining a pre-approval still does not guarantee that the lender will ultimately fund your loan. Lenders still need to look at property appraisals, verify your information and potentially check your credit again before agreeing to give you a mortgage.

Pre-approval helps you narrow the focus of your real estate search to properties that are within your financial reach. It also helps you check out lenders to find one that is the best match for your situation. When you find the real estate of your dreams, you’ll be ready to move to the next step!

If you’re looking for more information on the home buying process, I can help. Give me a call today.

Links:

Pre-approved for your mortgage

http://www.smartmoney.com/spend/real-estate/7-tips-for-getting-a-preapproved-mortgage/

Credit report

http://www.ehow.com/how_2325376_read-credit-report.html

Documentation of your income

http://www.mortgagesbymark.com/blog/what-mortgage-income-documentation-your-lender-will-need-from-you/