Mortgage loan pre-approval qualifying is the
first step in home buying or refinancing.
It's important to know that
loan mortgage pre-approval
pre-qualifying is the most important step in the home purchase or refinancing
process. This should be done as the first step because if you don't get past
this step, everything else is a waste of your time. Credit report scores are
verified along with other information. This establishes the
size and type of loan you're able to afford. For
new first time home buyers buying their first home, this helps decide the price range for the homes you should look at.
A loan / mortgage pre-approval
qualifying is important because you:
- Confirm how much purchase money financing you can
pre-qualify for and be comfortable with on fixed rate programs as well as
adjustable programs and those called
interest only programs where you only pay the
interest each month.
- Obtain in writing your confirmed ability as a borrower, to pre-qualify for a mortgage
loan
based on your credit report, income
and other information.
- Enhance your negotiation footing when you make an offer on a
new home. Sellers
will be more willing to accept your purchase offer if you qualify and have a loan
pre-approval mortgage commitment in writing.
- Home buyers agents will work more
industriously for you are
qualifying and have a mortgage loan pre-approval in hand.
- Quick closing. Your new home buying transaction
can close quicker because you already have the financing done.
- Edge out the competition. You'll win over competing
offers on the same property because sellers don't have to chance it that
you'll get the loan.
- Get Peace Of Mind. Shop with confidence that
you can afford it and you have the financing in place. You can request an
estimate of closing costs in writing as
well. You'll go in to the home purchase with "eyes wide open".
Obtaining a full pre-approval for a mortgage loan is
different than just pre-qualifying. Being pre-qualified just indicates that you,
should mortgage qualify for a loan based on initial verbal information you have
provided but does not bind the lender to approve and close the
financing. The broker will still have to process and submit a complete file, including your credit report, your income and
employment history to the lender before an approval is issued.
First, to pre-qualify and become pre-approved for home mortgage
loan, you'll need to find a
direct lender or broker, best
option is a broker. A broker will be able
to get you a loan pre-approval mortgage with 2 or 3 different direct lenders then select the one with the
best interest rates and fees
for you when it comes time to close. The broker will review
your credit report and scores, earnings and employment history if applicable,
and other information. You will need to submit appropriate documents to confirm
this information.
When all of the processing is done and after the
approval review is complete, you'll receive a "mortgage pre-approval
loan commitment letter." The letter states to home sellers and real estate
agents that you have
the money to buy a home. This letter can be
adapted to address the particular details of the home you are making an offer
on. This gives your Realtor a competitive edge when presenting your purchase offer
and deposit to the seller for acceptance. Once an offer is
accepted, the appraisal and title is incorporated into your pre-approved credit file, final
approval for the property is done and you close.
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