Now it’s time to gather your documents: bank statements, pay stubs, tax returns, and some other basic info to verify income, assets, and liabilities.
It might feel more fun to check out houses first, but getting your pre-approval process started now will save you money, time and stress later on!
Your loan advisor will have an easy-to-follow checklist to help make this step fast and easy.
Getting pre-approved vs. pre-qualified
As soon as you start shopping for a new home, one of the most important steps you can take is to get pre-approved for your home loan.
Getting pre-approved is different than getting pre-qualified.
Getting pre-qualified is a pretty straight forward process. Your mortgage lender will request some standard information about your earnings, assets, liabilities, and run a credit report. After they have your information you’ll receive a ballpark figure of what you might be able to afford when it’s time to make an offer on a new home. It’s useful as a reference, but once you move forward in the loan process, you might find that final home loan amount final home loan amount is different.
Getting pre-approved means that your mortgage lender has already approved a full loan amount for your home loan. Getting pre-approved means that your loan is guaranteed, which will help you stand out among other potential buyers and also lets sellers know you’re serious and you’ll be able to close fast.
A pre-approved loan will give you peace of mind when you’re shopping and a competitive edge when you decide to to make an offer on your perfect home.