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What Is Mortgage Pre-Approval, and Why Is It Important?
Mortgage Pre-Approval and Its Importance – Carthage Savings & Loan
Whether you’re purchasing your first home or relocating from your current one, perusing the housing market is an exhilarating process. However, it can become stressful when you find out the home you want is out of your price range. That’s why Carthage Savings & Loan offers free mortgage pre-approval to prospective borrowers so they can find out how much house they can afford – before falling in love with one they can’t. Here’s a look at the mortgage pre-approval process and why it is so important.
What is Mortgage Pre-Approval?
This process analyzes your current financial standing and fiscal history to determine the amount you will be able to borrow for your mortgage loan, what your monthly payments could look like and your interest rate. Several aspects are taken into account to determine your pre-approved mortgage, including:
- Forms of identification, including your driver’s license or passport and social security card
- FICO credit score
- Debt-to-income ratio
- Bank and investment account statements
- Proof of current income, such as pay stubs that show year-to-date income
- W-2 statements and tax returns from the past two years
- Documentation of additional sources of income, including bonuses or alimony
Once the analysis of your financial situation is complete, you’ll receive an official pre-approval letter from Carthage Savings & Loan, which will come in very handy when meeting with real estate agents and sellers. It serves as proof that you’ll be able to afford the house you’re making an offer on, as well as the down payment and closing costs.
Benefits of Mortgage Pre-Approval
There are many practical advantages to having your mortgage pre-approved. For one, you’ll receive the guidance of one of our experienced loan officers, who can educate you on the different loan options available and how to budget for them. You’ll also go into the process knowing your maximum borrowable amount so you can narrow your search to homes within your price range.
In addition, sellers are more likely to enter into negotiations with a pre-approved buyer, as the process saves both sides time and prevents unnecessary stress. And if any problems with your credit or finances arise, we’ll be able to alert you of those and navigate you towards a loan that may work for you.
Wide Range of Loans
At Carthage Savings & Loan, we offer free pre-approval for each of our available financing programs. That way, you’ll not only find out how much house you can afford, but you’ll also gain more confidence heading into making an offer on your new home. Our loan options include:
- Fixed Rate Loans
- Adjustable Rate Loans
- USDA Rural Housing Loans
- FHA Loans
- VA Loans
- Low/No Down Payment Mortgage
How to Get Pre-Approved
At Carthage Savings & Loan, we strive to make the mortgage pre-approval process as simple and painless as possible. You can get started by filling out our easy online application, which requests your personal information, gross monthly income, veteran status and more. Schedule an appointment at one of our four locations in Carthage, Watertown, Croghan or Clayton to continue the process. To find out more about mortgage pre-approvals from Carthage Savings & Loan, call us today at 1-800-232-0450.