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Getting Your Mortgage Purchase Loan Pre-Approved

Prior to being preapproved for a mortgage it is important to have chosen a mortgage company and type of mortgage desired.  Being pre-approved for a mortgage is when your lender, broker, or loan officer fully inspects your finances to confirm what amount you are able to be lent to purchase a home.  At this point your credit history, credit score, debt to income ratio, employment status, employment history, and savings are reviewed thoroughly to determine this amount.

Generally speaking, the better your overall financial situation the more favorable the terms of the loan will be.  The amount you are approved for is mostly based on your income and debt to income ratio while your rate is determined by your choice of loan, credit, and down payment.  Your employment and work history are precaution measures used to determine the lenders risk of your own but generally don't affect terms.  These are simply used on whether or not you have the ability to be approved at all.  Keep in mind that even if you are preapproved for a given amount, the home you are looking to purchase must appraise for at least that amount in order for the financing to be provided.

Once you are preapproved your lender will provide you with an approval letter.  This letter is a informal certification that provides confidence to sellers.  They see that you are a serious buyer and having this saves time for both the parties should a purchase take place.  This is definitely a useful tool when you are serious about purchasing a home.

 

Before you apply, understand the process...

  1. Mortgage Introduction
  2. Understanding Your Financial Situation
  3. Choosing a Mortgage Type
  4. Shopping for a Mortgage Company
  5. Getting Your Mortgage Purchase Loan Pre-Approved
  6. Taking Advantage of Realtor Services
  7. Finalizing Your Purchase Mortgage Loan

Why is Mortgage Purchase Loans non-bias?

The only funding this website receives is via Google Advertisements. We are not directly affiliated with any mortgage company and although we encourage you to shop with our websites sponsors, we do not recommend any specific bank or mortgage company.