How Do I Get Mortgage Pre-Approval?
You have done your assignment and identified your dream home, and further decided on the right mortgage lender to help you purchase your new home. Mortgage financing over the years has remained the main financing source for first time home buyers. However, these lenders have terms and condition set both to safeguard their interests and enviable your own concern. This concern is to ensure both the two parties are not exposed to any risks arising from the property purchasing transaction. This is why mortgage pre-approval is vital in the home buying process.
In the recent times, they have been numerous mortgage firms emerging. Even the conservative financial firms are coming up with several real estate financing products. These firms compete for customers more so the newly employed cadre. Some of these firms have made it easy by relaxing some of the regulations. This is to attract more clients especially those of medium and low income revenues. Despite of such efforts to capture more customers and increase on sales turnover, there are conditions that remain mandatory.
The mortgage pre-approval process helps the lender to determine if you qualify for the credit facility. This calls for your honesty and adequate preparation as it is really the turning point to home owning. Before the credit officer offers you a pre-approval letter you must convince him/her that you are qualified for the mortgage credit product.
The main indicators that the mortgage credit institutions are looking for are;
- Past financial records
- Credit Scores
- Tax compliance history
- Current earnings
- Stability of your employment status
To ensure the company is fully convinced and swayed to avail there product for your consumption you must be prepared.
What you need to prepare for the mortgage pre-approval process
The previous and current records, statements and relevant documents that you need to prepare in advance are;
- Bank Statement for previous months; this depends from one company or state to other. However, in most cases six months bank statements are preferable.
- Main Income statement for the previous years, in most cases statement for the last two years.
- Any other investments income statements for the last two years. You must give a certified proof of these particular revenues.
- If employed, official certified appointment or employment contract letter.
- Tax returns statements for the last 2 years
With the above documents you will be ably prepared for the mortgage pre-approval process. Click the button below if you're ready for the next step. Talk to a mortgage concultant today, before your house hunting adventures begin. Your real estate agent will thank you.
(creative commons photo credit)