Get Pre-Approved before Home Purchase

  Real estate experts usually advice homebuyers to go for a pre-approval loan before you start shopping around for the house of your choice. A pre-approval will give you many advantages than you expected. Through this, you will be able to know the amount of money the lender will lend you to purchase a house. Pre-approvals are also an assurance to a seller of your capacity to buy his or her home. It will also give you a sort of advantage during your offer process, especially when there are many buyers interested to buy their home. It is the next thing to actually having money in your hand.                   Knowing the amount that your lender is willing to lend you will give you more time to look for a house that is within the price range of your pre-approved amount.  When you finally find the house of your dreams, nobody can take that from you by telling you that you do not qualify to purchase it. The seller will likely accept the
price you offer even if it is less than the list price because the seller is assured that his or her home is sold. The seller can take the home out of the market and confidently put a pending status to it. A pre-approval also means a faster closing of the deal. Appraisals can be ordered right away and if the seller needs to move immediately this can get your offer first on the list.                   Steps in applying for a pre-approval loan:   1. Shop around for mortgage lenders and try to compare their programs and rates. You can also apply for it on the internet or even over the phone. The process is simple and easy and usually takes twenty to thirty minutes. By that time, they will be able to get all your necessary information. 2.  Select a lender that suits your financial and personal needs.   3. Submit to the mortgage lender the following important documents in processing your application such as:      Â
 Â Â Â Â Â Â Â Â Â  A. W-2 forms in the last two years                 B. Federal tax for the last two years                 C. Purchase of Agreement (if you have it already)                 D. Recent pay stubs or payroll slips                 E. Statement of profit or loss                 F. Last three months bank statements on any accounts that you have                 G. If you own a corporation, submit recent two-year corporate returns                 H. If applicable, a bankruptcy document                 I. Loan application completely filled out   4. After completing all the requirements above, you can
now wait for your approval. Usually, it runs between two to three weeks, depending on your transaction particulars.   In the pre-approval loan process, a loan officer of the mortgage lender will thoroughly study your financial situation. After this, the officer will suggest programs that closely fit your needs. If you buy a home for the first time, or a first time homebuyer, you can qualify for some state-backed programs that offer low down payment and low interest rates. If you have purchased a house before and you have more investment in the home, you might like to avail the fifteen-year loan with lower overall interest. Most first time homebuyers choose the traditional 30-year loan with either a floating interest or a fixed interest rate.   Finally, it is important to plan ahead of time. If you plan to buy a home lets say in March, you have to start with your pre-approval application a month or two months before that, meaning either February or January. When you have accom
plished these things, you are now on your way to purchase your dream house!                    

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