Get Pre-Approved For A Mortgage

      Why And How To Get Pre-Approved
   Are you already shopping for a home, or even thinking about buying one? Whether it is your first home or your tenth, you will probably have to get a mortgage. Yep, sooner or later you will have to step up to the plate and find the company who will make that mortgage loan for you. And in this turbulent market, it is best to be pre-approved for the mortgage you need before you begin shopping for a home
     The Advantages Of Getting Pre-Approved
   The biggest advantage of getting a pre-approved for a home mortgage is that it is proof positive of how much you can borrow. The mortgage market has changed significantly in the last few years, and that which used to be a slam dunk, can be, in today’s market, much more difficult and trying. Getting Pre approved can be a significant time saver as you will not waste time and effort hours searching for that “just right” home only to find out that you can’t qualify for the mortgage. Sellers will also be more motivated to work with you if they know you are able to afford their asking price. Sellers will also take any offer you make more seriously if they know you are pre-approved for a mortgage. It’s the next best thing to shopping with cash!
   If you are looking at foreclosed or short sale property (that’s where the terrific bargains are), many sellers of such properties will not even consider an offer to purchase if it is not accompanied by a Pre Approval or Commitment Letter from an legitimate lender. In addition, real estate agents will be more willing to spend time assisting you with your search if they know you are pre-approved for a mortgage. Pre-approval is a big help to the seller, the realtor, as well as you - the buyer.
     How do you get pre-approved
   Contact a Mortgage Broker. Why do I suggest a Mortgage Broker rather than a Bank? Simply because they will have more options available to you, both in terms of programs and lending sources through a multitude of banks, not just one. Better yet- find a company which is both a Mortgage Broker and Banker and you will have the best of both worlds.
   It is important for you to start the pre-approval process as soon as possible. A good Mortgage Advisor will, after taking your initial application, “pull” your credit report, provide you with a copy, and go over the report in fine detail with you. Unfortunately, it is all too common for credit reports to contain inaccurate information, and a mistake on your credit report could mean that you are charged a higher interest rate or be turned down for the loan. There may well be corrections that need to be made before you can be pre-approved and your Mortgage Advisor will help you get these done.
   You will also have to provide documentation to your Mortgage Advisor that covers all aspects of your financial situation. This will include tax returns, pay stubs and other information to support the income you are claiming, as well as asset statements (checking, savings, 401k, etc.) to prove your ability to provide a down payment. The Mortgage Advisor, in return, will provide you with information about the mortgage program options, monthly payments on the mortgage loan, closing costs, and other information about the mortgage process.
   After the application package is compiled and reviewed, the Mortgage Advisor will submit it to the lender and the "Underwriting" process begins. Once the paperwork is approved, the mortgage lender will issue a Pre-Approval Letter which outlines the terms of the mortgage approval.
     Check out potential lenders, and start your pre-qualification process now!