HOW TO GET PRE-APPROVED FOR A MORTGAGE LOAN

HOW TO GET PRE-APPROVED FOR A MORTGAGE LOANIf you’ve read any tips for homebuyers then chances are you’ve heard that you need to get pre-approved for a loan about a million times. The question is – how exactly do you get the pre-approval?

Here are the steps you need to take to get pre-approved and the most important facts you need to get you there.

WHAT IS A PRE-APPROVAL?

It’s a written statement from a lender stating that you would qualify for a particular loan under your current qualifications and the lender’s guidelines. A pre-approval letter is good for 60-90 days and the loan amount is based on your income and credit information.

A pre-approval letter is not an offer to lend, a commitment to make a loan, or a guarantee of specific rates or terms. It is however an accurate idea of how much home you can afford. And most importantly as a homebuyer, it’s proof to sellers that you have done your homework and are serious about purchasing.

PRE-APPROVAL VS. PRE-QUALIFICATION

Getting pre-approved and getting pre-qualified are two very different things and only the pre-approval holds much weight as a potential homebuyer. A pre-qualification does not go as depth into your finances as it does not include an analysis of your credit report. To be pre-qualified you simply give a lender an idea of your debt, income and assets (no paperwork, just your word) and a lender can discuss your potential options.

OBTAINING A PRE-APPROVAL LETTER

First and foremost you need to choose a mortgage lender. Keep in mind that each lender has its own standards and processes for determining whether to grant a pre-approval letter. However, in general you will have to complete an official mortgage application and supply the lender with all of your pertinent information.

PAPERWORK TO PRESENT TO YOUR LENDER:

  • Proof of income
  • Proof of assets
  • Proof of employment
  • A good credit score
  • Personal documentation i.e. copy of your divers license, Social Security number, and your signature on lots of paperwork!
Kevin Allen​      
Broker Associate
First Team Estates
Christie’s International Real Estate
Direct:714-696-8508
Office: 714-481-5831

Those who say “It can’t be done,” shouldn’t interrupt those who are doing it.
First Team Real Estate is the number one family-owned, non-franchised real estate company in Orange County and all of Calif., voted Best Real Estate Company 4 years in a row by the OC Register, and has sold more homes in Southern California than any other brokerage in the last 10 years.

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