Why Get Pre-Approved For A Mortgage?

One of the most important steps in the home buying process is getting Pre-Approved as early as possible.

The Pre-Approval process involves you speaking with a Mortgage Lender about your financial situation, what you'd like to accomplish, and any concerns you have. Armed with that information, a Mortgage Lender can obtain an approval from a lender up to a specified loan amount and provide you with monthly payment information and closing cost information.

There are many benefits to getting Pre-Approved. First, Realtors will spend more time assisting you with your home search if they are confident you'll be able to obtain financing once you've located a home you're interested in purchasing. Second, Seller's will take your offer more seriously since they know you will be approved for a mortgage -- and they won't risk taking their home off the market only to find out the deal is going to fall through 30 days later. Finally, since you know you've been approved and much of the paperwork has already been processed, you're in for a much less stressful experience.

Why is it important to do this as early as possible?

Many loan officers report that over 50% of the credit reports they see have inaccurate information listed. This inaccurate information could be the difference between you getting a loan or not getting a loan - getting a rate of 5% or getting a rate of 7.0%. The earlier these errors are found, the sooner they can be corrected.

So, what do you need for the Pre-Approval Process?

Here a list of documents your Mortgage Lender will want to initially see copies of:

*W2's from the last 2 years

*Tax Returns from the last 2 years

*Pay stubs from the last 30 days

*Bank & Brokerage Statements from the last 3 months

Additional documentation will be required depending on your specific situation and as the process progresses.

Your Mortgage Lender will go through a loan application with you, which covers questions related to your current residence, employment status, marital status, etc. There will be a series of disclosures you'll have to sign as well - some required by the State or Federal Government informing you of your rights in the process.

With the application and disclosures signed, the supporting documentation you provided, and an understanding of what you are hoping to accomplish, the Mortgage Lender is ready to submit your "loan" through what's called "Automated Underwriting". Within minutes, unless your situation requires an underwriter to personally review your file, you will have an answer to your loan application.

Now that you have an approval, your Mortgage Lender will issue a Pre-Approval letter outlining the terms of your approval. Your Realtor will request a copy of this letter (typically before they begin showing you homes) and will include a copy with any offer you make on a property.

Now it's time for the fun part ? looking for homes!

Chris Rocks is a successful Mortgage Consultant and writer based out of Chicago, IL.

Website URL: http://www.loansbyrocks.com

Contact Email Address: chris@loansbyrocks.com

In The News:


pen paper and inkwell


cat break through


How to Find the Best Home Improvement Loan

If you're looking for the best home improvement loan for... Read More

Mortgage Brokers or Banks: Which is Right For You?

When you're looking for a home loan, you might work... Read More

Five Things Never To Tell Your Mortgage Lender When Facing Foreclosure

1. Never discuss your household finances over the phone with... Read More

Secured Loans For Home Improvement ? When You Can?t Buy A Luxury Home

A house is just perfect with chipped walls and broken... Read More

Need a Mortgage, Refinance or Equity Loan? Learn What it Takes, Before Applying

Do you know what it takes to qualify for mortgage... Read More

Doing a California Refinance Online

Californians are passionate people. I know. I have lived in... Read More

Who Could Benefit From A Reverse Mortgage?

What is a "Reverse Mortgage?"Also known as a Home Equity... Read More

Home Equity ? Let the Market Eliminate Your Private Mortgage Insurance

In decades past, most people who were interested in obtaining... Read More

Shopping for a Mortgage, Avoid Three Common Mistakes

Buying a home or refinancing one is perhaps the largest... Read More

What is an Interest Only Mortgage?

An Interest Only Mortgage is one where the repayments are... Read More

Bankruptcy and Buying a Home

Filing bankruptcy is a stressful time in a person's life.... Read More

Helpful Mortgage Advice

Mortgage advice overwhelming you? Many people get advice from everyone... Read More

Stop Foreclosure - 7 Tips to Save Your Home

Faced with the threat of a foreclosure on their home,... Read More

Sorting through mortgage elimination programs

Mortgage elimination programs are all the rage these days. In... Read More

Subprime Mortgage Loans Online - What To Expect

Applying for a subprime mortgage loan online can seem intimidating... Read More

Home Mortgage Loans - Fixed Rate, Adjustable or Balloon, Which One Is Right For You?

When you're shopping for a new home-especially for the first... Read More

How to Avoid Paying Mortgage Insurance

In today's world, a borrower should not be paying mortgage... Read More

Get the Best Rate on Your Home Mortgage Loan

Home mortgage interest rates hit record lows in 2004 and... Read More

Change in Texas Law May Make Reverse Mortgages More Popular

Texas was one of the last states to allow homeowners... Read More

How To Determine The Price Of Your Home

Why is it that some homes sit on the market... Read More

Homes, To B(uy) or Not to B(uy)

Whether you are just moving out on your own for... Read More

Buying a New Home ? Home Buying Tips

If you in the process of looking for your first... Read More

Is the Inverse Mortgage a Scam? New Program Promises Mortgage Payoff inside of 5 Years

If a mortgage could be paid off in five years... Read More

Refinancing Your Mortgage Can Open Up A Lot Of Options For You And Your Family

It can happen to anyone, the roof is leaking, the... Read More

How easy is it to get a Commercial Mortgage in the UK?

As is the case when applying for any mortgage, be... Read More

New Home Loan - 3 Tips To Speed Up The Mortgage Loan Approval Process

Imagine this: you've found the perfect house, and feel lucky... Read More

Non-conforming Home Loans vs Conforming Loans

The simple definition of a "non-conforming home loan" is: You... Read More

Mortgage Pre Approval - Getting Pre Approved For a Home Loan Online

A pre-approved mortgage is a must in a competitive housing... Read More

What is a Fixed Rate Mortgage?

As the term implies, with a fixed rate mortgage the... Read More

Which is Better? Fixed-Rate or Adjustable-Rate Mortgages

The answer depends on several factors including your financial situation.... Read More

2nd Mortgage - Better Than Refinancing

You have probably received refinancing offers in the mail or... Read More

Is an ARM Right For You?

Let's start by taking a look at 7 key elements... Read More

Basic Tips for First Time Home Buyers

The first time you purchase a home is an exciting... Read More