Get Pre-Approved for a Mortgage to Start Your Home Search
Start Your Home Search with Mortgage Pre-Approval
Whether you are a single buyer looking for a place to call your own, need more living space for your growing family, or are ready to downsize, a lot goes into finding the right house. And with so much to consider during the process, one aspect that’s often overlooked is getting pre-approved for a mortgage. In fact, an estimated 40% of prospective buyers do not seek pre-approval, yet doing so can make all the difference when shopping for a home. Here, the team at Carthage Savings & Loan explains why this step is so important and how to go about it.
What does pre-approval mean?
Pre-approval allows potential lenders and real estate sellers to understand your financial situation. The process identifies any issues in your financial background that could cause problems when applying for a mortgage. Whether you have too much debt or a low credit score, pre-approval is an easy way to help you see where you stand.
To get pre-approved, you'll need a number of important personal documents, including pay stubs, W-2 forms, tax returns, records for bank, retirement, and investment accounts, and more. If you have blemishes on your credit, you may need a letter explaining why. And if you are self-employed, you may be required to provide additional financial information to assure lenders that your income is sustainable.
How can a pre-approval letter help?
Having a pre-approval letter provides several advantages. First, if you haven't yet taken the time to calculate your budget and what your monthly income is, pre-approval gives you an idea of how much house you can afford. This means you won't waste time looking at housing outside of your price range and possibly falling in love with one you won't qualify for.
Pre-approval letters also look closely at your financial situation to help you see any potential credit problems that you may want to address. Knowing what lenders will see when they look into your finances allows you to work toward making the changes you need to better your situation.
Lastly, if you're pre-approved, both lenders and sellers will know you're serious about the process. Not only will this potentially give you a leg up on other buyers eyeing the same property, but it will help make the entire process go more smoothly. The last thing that a seller wants is to accept your offer, take the house off of the market, and then realize that you aren't actually qualified to go through with the sale. In some cases, you may not even be able to view the property without being pre-approved first.
You don't necessarily need to choose the lender from which you received a pre-approval. It can be beneficial to look at rates from a few different lenders so you can find which option makes the most sense for you. But at Carthage Savings & Loan, we help you get an affordable home mortgage loan that suits your budget and your housing needs. You can even pre-qualify for a loan with just some basic information. If you have any questions or would like to speak with a member of our team, call us at 800-232-0450.