How To Get Pre-Approved for a Home Loan
How To Get Pre-Approved for a Home Loan
The housing market often moves quickly. Upon finding a house that you are interested in purchasing, you may only have a few days to make an offer before someone else scoops it up. As such, it is highly beneficial to get pre-approved for a home loan so that you can make an offer as quickly as possible. Plus, getting pre-approved will give you a better idea of your budget, which will guide your home search process. To learn how to get pre-approved for a home loan, continue reading.
Gather the Necessary Documents and Information
The first step to getting pre-approved for a home or a construction loan is to gather the necessary documents and information. The exact documents that you will need to provide will likely vary slightly, depending on the lender. However, almost all lenders will require proof of income, employment verification, your social security number, recent bank statements, and signed W-2 statements.
Determine What Type of Home Loan You Want
When it comes to home loans, there are numerous options to choose from. The two most popular options are 30- or 15-year fixed-rate or adjustable-rate loans.
However, there are also several options that may be more favorable for those with low credit scores, such as FHA or VA loans. Before applying for pre-approval, you will need to determine which type of loan is going to be the most advantageous to your financial situation.
Reach Out To Several Lenders
Once you have determined the type of home loan you want to apply for, it’s time to start reaching out to lenders. When applying for a home loan, it’s always a good idea to reach out to more than one. In addition to improving your chances of getting approved, applying for a home loan from several lenders will allow you to compare interest rates and loan terms to find the best deal and save money.
Apply
It’s finally time to apply. The application process for a home loan will vary depending on the lender. While some lenders provide a convenient option to apply online, others may want to work through the application process with you in person.
When applying, be ready to provide the lender with your various documents and information that will give them a good idea of your financial history. After applying, it typically only takes between one and three days for the lender to verify your assets and determine if you will be pre-approved or not.
