It’s exciting to be a homebuyer. Developing your wish list, browsing homes, embarking on a new adventure… Wouldn’t it be nice if you could forget the mortgage application process and focus on the fun?
While you can’t ignore the business end of buying a home, there are things you can do to lighten your load. One step you can take is to get a mortgage preapproval before you start shopping for a home.
What Is a Mortgage Preapproval?
A mortgage preapproval letter tells you approximately how much money you can borrow to purchase a home. It includes the type of loan you might qualify for and your likely interest rate.
When you find the home of your dreams, you’ll need to submit an official mortgage application for approval. Your official approval details might differ slightly from your preapproval, but the difference rarely leads to a dealbreaker.
Why Is a Mortgage Preapproval Important?
It’s tough to compete in the real estate market without a mortgage preapproval. Here are some of the reasons why you need one:
- A mortgage preapproval helps you and your real estate agent focus on homes within your budget.
- When sellers see that you have a mortgage preapproval in hand, they understand that you are a serious buyer who will make a solid offer on their home.
- Going through the mortgage preapproval process will allow you to iron out any issues that might delay the final mortgage application.
What You’ll Need for a Mortgage Preapproval
If you’re ready to get preapproved for a mortgage, you can move the process along by gathering the things you need ahead of time. Here’s a list to help you get started:
- W-2 statements or other income documentation
- Recent pay stubs or another acceptable document to verify your employment
- Bank statements for all applicable accounts
- Driver’s license or state identification card
- Social Security number
- Other documentation about your credit history or debt-to-income ratio requested by your lender
Timing Your Mortgage Preapproval
Mortgage preapprovals are usually valid for up to 90 days. Know your preapproval’s expiration date and plan your house-hunting accordingly.
What if you don’t find your dream home before your preapproval expires? No worries! You can apply for a renewal, but you’ll need to provide your up-to-date financial information to get one.
Contact Us Today!
Are you in the market for a new home? Don’t start your house-hunting journey without talking to a mortgage professional! Contact us at MortgageDepot today to begin the preapproval process.
Connect with one of our loan consultants for more information.
