Looking to Get Pre-Approved for a Mortgage?
Getting pre-approved for a mortgage gets you started on discussing loan options and seeing what budget you have while you house-hunt for your dream home. Here are some of the steps that you need to know before you start your pre-approval!
Information that Lenders Need to Know:
Credit history
Credit score
Debt-to-income ratio
Employment history
Income
Assets and liabilities
Lenders will look through pretty much all of your financial histories to see if you qualify to receive a loan.
When to Get a Preapproval:
Mortgage pre-approval letters expire somewhere between 60 and 90 days. However, if you are beginning to think about moving and know you may encounter some roadblocks in getting a mortgage, it’s best to start the process as soon as possible. Even if you have a perfect financial history, getting a pre-approval letter earlier on in the process will improve credit and also give you time to start saving up the money you’ll need for a down payment.
What’s Included on the Mortgage Application:
1. Type of mortgage and type of loan sought
2. Property information and purpose of the loan
3. Borrower’s personal and employment information
4. Monthly Income and Combined Housing Expense
5. Assets and liabilities
6. Declarations*
*Declarations include judgments, bankruptcies, foreclosures, lawsuits, etc.
Within three business days of receiving your application submission, the lender will give you a three-page document detailing whether or not you were approved for the loan, and if so, what type of loan and mortgage you were approved for.
