How to Get Pre-Approved for a Home Loan
- Jan. 10, 2020
- Taylir Paynter
- Home Loans
If you’re considering getting a new home loan, getting pre-approved should be the first step in your homebuying process. With a mortgage pre-approval, your lender will look at your income, any debt that you may have and check your credit score. By doing this, it will help determine whether you’re pre-approved and indicate the amount of mortgage loan you may receive. Let’s take a look and determine the steps you must take in order to start the process.
What does it mean to get pre-approved? To be pre-approved for a mortgage means that your mortgage lender has reviewed your credit, income, assets and debt. They have determined that you’re a good candidate for a mortgage. Pre-approval normally implies that your mortgage lender is willing to lend you the money for your mortgage. It also shows sellers that you are serious about buying a home.
What are the steps to getting pre-approved at New American Funding?
- Give New American Funding a call and speak with a seasoned Loan Officer who is licensed in your state.
- The Loan Officer will provide information over the phone and send you a pre-approval. application to fill out. The application can be sent via text, email or U.S. mail
- Once the information on the application has been completed, your credit will be checked.
- Next, your information will be submitted to an Underwriter who will double check your application and make sure it meets all the guidelines.
- You will then be issued a pre-approval letter, so you can start shopping for a home!
What is included in the pre-approval letter? New American Funding’s pre-approval letter will include the following information:
- Purchase price
- Loan to value
- Loan type/term
Getting pre-approved will help you determine how much home you can afford, and it starts before you even find your dream home. You should contact your mortgage lender first and complete an application and provide any necessary documents that are related to your financial history. Once the application has been completed, your lender will then determine how much money they can lend you, which will allow you to look for homes within that price range. You’ll also have a good idea of the interest rate that you will be offered.
Why is it important to get pre-approved? When you’re ready to make an offer on the home that you’re interested in purchasing, both the Real Estate Agent and seller will want to see a pre-approval letter. This document will confirm that you are able to afford to make the purchase and can be taken seriously. Note: A pre-approval on a mortgage is typically good for 30-90 days; this may vary across lenders.
The best way to start the pre-approval process is to contact a New American Funding Loan Officer. Our experienced mortgage professionals will help you examine your finances and give you an idea of how much home you can afford.