Getting pre-approved for a home loan before you start touring houses can put you ahead of the pack. Should you fall in love with a house being pre-approved strengthens your offer to purchase. Applying for a mortgage requires a written application and supporting documentation. Here are a few things you should be ready for when meeting with a mortgage lender:
- They will check your credit score. Lenders will examine your credit history to help decide if you’re a good candidate for a loan. Credit scores are ranked on a scale of 300-800; the higher the better.
- They will check your employment history. Leaders ask for a list of your past employers, how long you’ve been with your current employer and what your annual salary is. They want to make sure you can make regular mortgage payments.
- They will check your assets and debts. Be prepared to show your past tax records, recent bank statements and current debt amounts, including credit card debt, car long or student loan. Lenders want to know your debt-to-income ratio to know if you can make each loan payment with the income you earn.
- One size doesn’t fit all. Mortgage loan and lender options vary. Different loan types can accommodate different financial situations. The same goes for additional resources like the Federal Housing Administration (FHA) or Freddie Mac. Your Agent can help you understand the various options and help you pick the right one for your situation.
Getting pre-approved for a home loan before you start touring houses can put you ahead of the pack. Should you fall in love with a house being pre-approved strengthens your offer to purchase. Applying for a mortgage requires a written application and supporting documentation. Here are a few things you should be ready for when meeting with a mortgage lender: