When it's time to buy a home, there's more to the process than searching listings and finding your dream house. In fact, it should start with getting pre-approval letters from a mortgage lender. But what is that process like? And why is it necessary in the first place? Below is a brief guide to help you understand this essential step.
How Do You Secure Pre-Approval Letters?
Head to a trusted mortgage lender to start the process of getting the letter. They’ll have you submit an application, which can cost a fee, and then run a check on all your finances to see how much you can afford when buying a home.
Be prepared to have all the appropriate documentation in hand. Typically, bank account statements, proof of income, and disclosure of all debt, assets, and liabilities are required to start the application process. Lenders will run screenings on your entire financial picture to get a better look at how much you'll be approved for.
Why Is It Important?
Before you can purchase a home, you need written proof you can obtain a loan for the right amount. Having a mortgage pre-approval letter shows the homeowners you are at least qualified to get the funds you need to purchase and close the home. Often, having that document is necessary before you can offer a bid. Additionally, it will help you understand what you can afford so you can better refine your search before looking for a home.
Being pre-approved for a loan makes the home-buying process smooth. If you need help, trust the team at Fairway Independent Mortgage Corporation in Edina, MN. The mortgage experts are licensed in both Minnesota and Wisconsin, and they’ll help you with everything from securing your first pre-approval letters to understanding the mortgage rates. To learn more, visit them online or call (952) 797-6032 to set up your consultation today.