| iv> | | | | your application. Most important of all, it will give |
| It is very hard to get a mortgage nowadays. But | | | | you the chance to shop wisely and compare |
| getting preapproved can make things a lot easier for | | | | different properties and loan products. |
| you. You can negotiate effectively with sellers if | | | | What You Need for the Pre-approval Process |
| you have a pre-approval. It makes perfect sense | | | | There are several documents that you need to |
| to get a pre-approval before you actively shop for | | | | submit in order to get a pre-approval. First of all, |
| houses. Once you are preapproved, this means that | | | | you need to prepare your tax returns and W-2s for |
| the lender has already considered your financial | | | | the past two years. You must also submit your |
| position. Your income, credit and assets were | | | | recent pay stubs to show that you are presently |
| evaluated and you have qualified for the mortgage | | | | employed. Bank statements are also required |
| that you are seeking. A pre-approval indicates that | | | | documents that should be included in your application. |
| you are really serious about buying a new home. | | | | |
| This gives you enough leverage to negotiate with | | | | Other documentations that are needed include other |
| the seller so you can get a good offer. | | | | income sources, investments, second job and child |
| Preapproved is totally different from pre-qualified. A | | | | support. You must also provide an authorization |
| preapproved borrower has passed a higher level of | | | | letter that will allow the lender to pull your credit |
| evaluation by the lender. In other words, if you are | | | | report. Most banks have standardized forms for this |
| pre-qualified, the lender is saying that you may qualify | | | | kind of letter. |
| for a loan. If you secured a pre-approval, the lender | | | | Once you get preapproved, its terms will be outlined |
| is confirming that you are indeed highly qualified for a | | | | with details about the loan that you have qualified |
| mortgage loan. | | | | for. However, your pre-approval will not lock you |
| Benefits of Pre-approval | | | | into any interest rate. This means that the rates that |
| There are several unique benefits if you get | | | | you can get may fluctuate until you get a suitable |
| preapproved. First of all, a pre-approval is a good | | | | property to buy. And because interest rates |
| measure to know how much you can borrow from | | | | fluctuate daily, you may get higher or lower rate |
| lenders. This will give you the opportunity to | | | | between the time you secured the pre-approval and |
| identify properties that you can afford and will | | | | the time you apply for the loan. |
| greatly simplify your home buying experience. | | | | You have to remember that a pre-approval is |
| Better peace of mind is another big advantage that | | | | effective only for a specified period. You should be |
| you can enjoy if you are preapproved. Because you | | | | able to use it within 60 to 90 days. If you can not |
| know that you can surely get a mortgage loan, then | | | | use it by then, you may reapply for another |
| there is no need to worry about getting a denial for | | | | pre-approval. |