How to get pre-approved for a mortgage? Well, if you are one of the serious buyers for house, it is better to start at the lender’s offices than the open house for the process. It should be done for your pleasant sake. The benefits for potential buyers will be much better if you consult it with the lender so you can get the pre-approval letter.
First thing you should do is getting the opportunity to discuss the option for loan as well as the budget and stuff. After that the lender will look at the credit list and see if there is any problem for the buyers both for now and for the future. The third step is you will be learning about the maximum money that could be borrowed. Other than that, the prospective borrower could show the price range as well. But if you are the borrower, it is important to be careful in estimating the comfort level when you are going to decide the housing payments.
There are several points you need to understand when we are talking about how to get pre-approved for a mortgage. The first thing you should bring along with you when talking with the lender is the proof income. The borrower has to prepare the W-2 statements from the recent two years. It includes the pay stubs that will show your income along with the data income, other proof about the additional income such as bonuses or alimony and the tax returns from recent two years.
After the proof of income you will need the proof of assets. The proof of assets can be obtained from the present bank and ask them for the bank statements as well as the statements of investment account. Those things will prove that you have enough funds for the down payment, closing costs and also the cash reserves. If you want to apply for FHA loans then it requires the down payment as low as 3.5% from the house costs. Meanwhile, the traditional mortgage for housing payment requires 10% up to 20% from the house costs, depends on the program of loans that you take.
Good credits score is also the other important point you need to have. Most lenders in nowadays will reserve the interest rates in the lowest level for the customers with 740 points or above in their credit score. But if you have a little lower credit score, you have to pay higher interest rate or additional payment for discount points if you want to lower the interest rates. The guidelines of FHA loan also get tightened in months lately. If you are a prospective borrower that has under-580 points for the credit score then you have to pay larger down payment. For your information, most lenders in nowadays will require at least 620 if you want to be approved for FHA loan.
The other two steps you need to bring are the employment verification and also the documentation. After that you are already qualified for how to get pre-approved for a mortgage.