Before you set out to shop for a loan, it is important to understand the meaning and relevance of mortgage pre approval and why you need to start your house hunting in the lenders office as opposed to the listing sites or in the field. You should also understand the difference between pre approval and prequalification and know when each is relevant. As much as a prequalification or a pre approval will not guarantee you a mortgage, the tips presented here will be immensely helpful in bringing you close to getting your dream home.
During any mortgage pre approval, the lender will seek to determine if you indeed have resources to make a purchase of a home. They will collect information such as credit card scores, identification documents as well as some proof of your assets. The documents you are likely to provide here include your most recent paystubs, driver’s license, most recent copies of W-2, proof of IRA’s and sometimes an application fees.
Pre qualification is usually the first step that many would be buyers would go for in their quest to owning a home. Though it is important, it is not mandatory at all. The essence of prequalification is to let you know the amount of funding you can secure from your lender towards purchasing your home. With this information in mind, you will shop for the homes and houses that are within this amount hence you will avoid wasting time and energy considering properties that are either beyond or below your reach. In the process of prequalification, the banks are likely to inquire about your income, debts, projected payments as well your assets in order to make calculations to determine the amount of loan you can secure from them. Kindly note that neither of these is a guarantee that you will secure the loan or the seller will agree to sell to you.
Mortgage pre approval will give you more bargaining power with the sellers in the sense that you shall have demonstrated that you have the resources already at hand and you have the intent to make the purchase. In this manner, you are in a better position to bargain and get a better deal as opposed to buyers who haven’t been preapproved hence they can’t demonstrate that they have the resources or even the intent to make the purchase.
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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.