Are you looking to buy a house and wants to know how the pre-approval process work? The way to obtain pre-approval through a mortgage lender can seem a bit confusing if you’re a first-time homebuyer or not knowledgeable of the real estate industry. Let’s prepare you for a big step in the average buyer’s journey to homeownership by looking at how the pre-approval process works for homebuyers in NKY or Greater Cincinnati Area:
Check Your Credit
Before you apply for a mortgage or any other type of loan for that matter, you want to begin by receiving your free annual credit report from the major credit reporting agencies.
This report acts as a sort of financial background check on you, and you want to make sure everything on it is accurate in order to prevent any complications arising when purchasing your home.
Comb through the entire report from front to back and make note of anything that seems either unfamiliar or entirely incorrect. You then have an opportunity to contact the credit reporting agency to request changes. Alternatively, you could discover an outstanding debt you have forgotten and you can then remedy that issue appropriately.
Once you know your credit is accurate and cleared up, you’re certainly ready to move forward with the pre-approval process.
Browse Your Lender Options
Not all mortgage lenders are alike, and it’s up to you to find out which one is best for you.
When looking for your lender, you want to get details on potential interest rates, payment methods, and what types of mortgages they issue. The types of mortgages issued by a lender can vary from different loan terms (10-year, 20-year, 30-year) and programs such as VA or USDA loans.
If you are looking to acquire a VA or USDA loan, it’s highly suggested that you find your lender through your local branch of the Federal Housing Administration to avoid any possible predatory or fraudulent lenders.
Apply for the Loan
When you have found your lender of choice and a property in which you are interested, it’s time to get the ball rolling by going through that lender’s application process.
You will be required to include financial details on the home you are looking to buy and the lender is likely to want to know some basic information regarding your income.
It’s important that you fill the application out truthfully and accurately. Embellishing your income or the value of the property on which you’re looking to bid is only likely to land you in hot water later on.
After you have completed your application, it’s a matter of time before they will contact you and you can continue along the pre-approval process or get things going with a different lender.
Cooperate With Your Lender
With your application sent off to your lender, the next step is going to require you to give some documentation in order to prove your access to savings, regular income, employment, and possibly other aspects of your financial life.
At this point, it’s very important to quickly hand over any requested documentation to your lender and keep in touch regularly. They will contact you to keep you updated, but if you ever have any questions or concerns, let them know.
Receive Your Pre-Approval Letter
After your lender has determined you are in a financial state that they are likely willing to approve the loan you have requested, you will receive a pre-approval letter.
This letter carries quite a bit of weight with agents and sellers because it shows that not only are you committed to purchasing a given property but it shows that your lender has faith in you to manage to purchase it and act responsibly.
Use that pre-approval letter to your advantage and let it shine through your offer and negotiation.
Help Navigating the Pre-Approval Process in NKY or Greater Cincinnati Area
If you’re buying a home or Cincinnati area property Team Sztanyo has the experience you need to help make the buying process easier, less time consuming, and we’re on your side to help make sure you get the best deal while we worry about all of the details.
Either way, countless local home owners and investors trust Team Sztanyo to help them wade through the real estate buying and selling process while keeping more cash in your pocket and helping you save the time and headache of working with less experienced brokers.
If you have questions like: How does the home preapproval process work? Can you get denied after pre-approval? Does pre-approval mean you will get the loan? Then give us a call! We take the time to listen to your concerns and answer any of your questions here at Team Sztanyo, with no obligation. Contact Team Sztanyo at (513) 813-6293 today!