While it may be a great idea to idle shop for a home, those who are seriously in need of a home will start their search at the lender’s office. They understand the importance of getting mortgage loans preapproval even before they begin searching for the houses which they wish to buy. The first benefit of the preapproval is that the buyers get a chance to discuss the various loan options with the lenders. Secondly, the lenders will check on the credit card ratings of the buyers and alert them in case of any problems that might hinder their acquisition of the property and finally, the mortgage loans preapproval will let the buyers know the maximum amount of funding you can access for your purchase.
In order to get mortgage loans preapproval, most lenders will require you to have the following-:
Long gone are the days when you could get loans without any verification or documentation. You must show that you have a source of income for which you can use to repay the loan. As a proof, you may be required to have W2 Statements for at least the last two years, pay stabs for at least the last three months as well as any other additional documentation to show bonuses and tax returns.
Most lenders will also require you to show some proof of assets as part of the mortgage loans pre approval. In order to do so, you may be required to present bank statements and investment account statements to act as evidence that you indeed have the money to make down payments, meet the fees and foot the closing costs. In the case of an FHA loan, you will be required to make a deposit of 3.5% of the total cost of the home but most of the conventional loans might requires large deposits of as high as 20% of the mortgage amount.
A good credit score will greatly enhance the maximum amount of funds you can access from your lender. Most lenders will offer the lowest rates to borrowers who have impressive credit scores which in most cases is considered to be a score of 740 and above. Borrowers below this mark might be forced to pay slightly higher rates. Most reputable lenders however will work with individuals with low or less satisfactory credit scores and help them working towards making their scores better so that they can also access the low rates.
Before being preapproved for a mortgage loans, the lender is likely to ask for your recent pay stabs and sometimes they might call your employer to verify that you are indeed an employed and also check your monthly earnings. Lenders love to give their money to people who are in stable jobs and who face little risks on defaulting on the repayment plans. This is a strong factor when it comes to mortgage loans preapproval.
The last requirement that will be needed for your mortgage loans preapproval is some form of documentation. This might include your driver’s license, social security number as well as a specimen of your signature to help them pull up your credit information.
As a reputable lender that has been in the industry for decades now, we have simplified our mortgage pre approval process so make it easy, efficient and faster for our clients to get preapproved. Talk to us today if you need faster and efficient preapproval for your mortgage.
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We specialize in offering different kinds of loans ranging from VA home loans, FHA loans and we also offer refinance mortgage services. We are a team of experienced and highly skilled lenders who have been in the industry for the last three decades and have hence developed the skills and knowledge necessary to ensure that you get the best of every loan application you make. Talk to us today and enjoy the massive benefits that many homeowners have enjoyed when they needed our assistance to secure their homes.