Getting Pre-Approved for Home Loan
Once you have an idea of the type and size home you want, as well as area you’d like to look in, the next step is getting pre-approved for home loan by a lender. By doing this before looking for a home, you’ll save yourself time, energy, and frustration. Getting Pre-Approved for a Home Loan will:
Determine how much you can afford
Pre-approval helps you avoid buying less home than you can afford or being disappointed if you don’t qualify for as much as you had hoped.
Show your total investment
You’ll know approximately how much money you’ll need for a down payment and closing costs.
Let you know your monthly payment
You’ll have a close estimate of what your monthly principal, interest, taxes, and insurance (PITI) will be.
Identify the loan programs you qualify for
With the wide variety of loan programs available, it is important to know which types you qualify for and which will best suit your needs.
Strengthen your offer
Sellers are more inclined to accept realistic offers when they know that you have taken the time to be interviewed by a lender and can qualify for a loan.
Your lender can also help you determine alternatives and strategies that will help you buy the home of your choice.
- Special first time homebuyer program.
- Co-mortgage financing
- Debt consolidation counseling
In order to be pre-approved, the lender will need to know:
- Your employment history and income
- Your monthly debts and obligations
- The amount and source of cash available