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Getting Pre-Approved By a Lender
- When being pre-approved the buyer receives a commitment in writing from a lender stating an exact amount they can be granted for their purchase.
- Gives an exact amount of how much real estate you can afford.
- Reduces the amount of time to fund your loan.
- Sellers will be much more receptive to potential buyers who have been pre-approved because they know the buyer is serious.
- Costs for pre-approval are generally nominal and often paid when your loan is closed.
- Required to provide comprehensive documentation in which the lender verifies. Such as:
- Job Status
- Bank accounts
- Monthly Income vs monthly debts
- Auto Loans
- Total Assets vs debts
- Credit cards
- Recent Paycheck Stubs
- Check your credit rating! Your credit score will influence the type of home you can buy and price range you are approved for. Anything above 620 is considered good. Having a higher credit score may mean a lower interest rate on your mortgage.
