Pre-approval For a Mortgage
Obtaining a pre-approval for a mortgage will assist you in
moving much more quickly on a home that becomes available that meets your
criteria. The first step is to get pre-qualified for a mortgage.
Pre-qualification is the process that the Buyer goes through without actually
applying for a mortgage. Pre-approval is the process of getting a mortgage
approval before you actually find a home that meets your specifications.
Pre-qualifying enables the Buyer to assess how much they can actually purchase,
and what kind of mortgage they would qualify for. The pre-approval is a
commitment from the lender to the Buyer that they will supply the needed funds
to purchase a home. When you find the home that meets your requirements you can
approach the lender for your pre-approval.
Pre-approval of a mortgage is when your lender has reviewed
all your financial information and has determined the highest limit of money you
can borrow. The advantages to pre-approval consist of:
- You understand how much you can have access to, so you don't throw away
time looking at properties you can't meet the expense of.
- You don't have to be concerned about rising interest rates even as your
shopping for a home, as typically the mortgage broker will pledge the
current interest rate for 60 - 90 days.
- You have an edge when you make an offer, since the seller knows you're
more probable to get a loan.
- You save time when you apply for your loan since you've previously done
your formalities with the paperwork.
Several banks and financial institutions are contending for
your business so it makes sense to shop around for a mortgage. The majority of
lenders will decrease their posted interest rate so there is room for
bargaining. Your capability to bargain for a low rate and a flexible mortgage
will frequently depend on how great of a deal of business you have done with the
organization. You can get in touch with banks and credit unions directly, or
work with a mortgage broker. A broker will help you discover a lender and the
best mortgage package. The Internet offers a wealth of information on assorted
lending organizations as well. Also, the realtor you select to work with can
refer some names of professionals in the industry.
Once you have selected your lender, you will be required to
make available your financial information. Your lender will would like the
following:
- Individual information such as number of dependents and marital status;
- Information of employment, including a letter from your employer verifying
your salary;
- Banking and investment information;
- Details of your assets (i.e.- a car, other property);
- Information on loans and other liabilities;
- Consent to do a credit inspection.
[ Main
Index | Why Karen |
Karen's Listings |
Home
Finder | Looking
to Buy | Looking to Sell |
Real Estate Terms | Calculators
| Contact
Karen ]
Send mail to webjourneys@hotmail.com
with questions or comments about this web site.
Copyright © 2001 Web Journeys