You are so excited at the prospects of finding a new home that you begin searching the Internet for the right one. However, before you get too invested in the home search make sure you take the time to get pre-approved for a loan as this process can take some time depending on the situation you are in. These four tips can help guide you through the pre-approval process.
Finding the Mortgage Company for You
You will have this loan for the next 15 to 30 years so you want to make sure you get the one that works best for your needs. In order to do this, you will want to do research both online and locally. You want to find a good company that will offer you low interest rates and APR. This can take some time to do correctly, so make sure you give yourself at least a few weeks to take care of this step.
Your pre-qualification letter will be important to helping make sure you get the house you want. You can get this letter while talking with different lenders and it will only be a few days until you have it. The letter helps sellers know that you can afford their home. For your pre-qualification letter you will not need to submit any paperwork.
Pre-approval is Important
You will want to get a pre-approval letter for more sellers to take you seriously. You will need to send in things like bank statements, proof of employment, and they will also run a credit check. If your pre-approval case is straightforward and simple, this process can take about a week. If you are divorced or you have a lot of debt, this pre-approval process can take a few months.
The Last Step to the Process
The final thing you will need to do after the seller accepts your offer is to have your home appraised. During this time the appraiser verifies that your home does cost as much as you are asking for in a loan. Once this is done the lender will approve your loan and you can close on the home.
Getting a mortgage can be a stressful process for some. However, if you know the process and that it can take a chunk of time to complete, you can be prepared for whatever is thrown your way. Completing these for pre-approval steps will help you get through the mortgage process with ease.