The difference between being prequalified or preapproved for a home loan can be a critical factor in determining whether or not you’ll get the home of your dreams. In short, preapproved homebuyers are far more attractive to sellers than shoppers who are merely prequalified. The good news is there’s really no big secret regarding how to get preapproved for a mortgage!In fact, getting preapproved for a mortgage is a relatively simple process. Here’s how:
Make sure you’re ready
Deciding to own a home is a big responsibility. So make sure you’re really up to the task before committing.
Check your credit report
It’s important to make sure there are no mistakes on it because borrowers with the best credit scores get the lowest rates.
Shop for a lender
Today, online shopping makes it easy to compare rates and loan options.
Gather your documents
Your lender will require various paperwork including bank statements, pay stubs, W2 forms, tax returns, and documents showing any other sources of income. You’ll probably have to pay for a credit report at this time.
Wait for approval!
Once the lender gives you a pre-approval letter, you’re ready to start shopping for the home of your dreams. Best of all, you’ll then be able do it with confidence.
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Readers: This is the final article in my 25-part no-nonsense “Mortgage Basics” quick-reference series. I hope you found the series to be informative.
Photo Credit: GotCredit
