The Ins and Outs of Mortgage Approvals
Pre-approval should never be skipped and should always be the first step when it comes to purchasing a home. Professionals from Rocket Mortgage suggest following these steps when it comes to the pre-approval process.
Know The Cost
Before obtaining a home loan, you should calculate your mortgage payment using an online mortgage calculator. This will give you a rough estimate of costs and will list all the cost so that you have no surprises along the way.
Get The Ball Rolling
This should be the first thing you even think about before starting the home buying process. Start the pre-approval process immediately so you will have ample time to organize your paperwork, credit and finances. A lender such as Rocket Mortgage can help you through the process of gathering all of the necessary documents.
Gather The Proper Documentation
As mentioned earlier, this is the best way to get everything ready. Make a mortgage pre-approval checklist that lists all of the required documents you need. These will include bank and investment statements, social security cards, income and employment details, pay stubs, tax forms, and lists of assets.
Check Your Credit
Your credit score can have an effect not only on the decision to give you a loan, but also at what rate you will get a loan. Before you apply for a mortgage, run your credit report and get your FICO score. This will help you get a better picture of where you stand and if you need to improve your score before applying for a loan.
Remember following these steps will help the time frame and process of getting pre-approval quicker and easier. If you do not have a lender, talk to your real estate agent who can recommend someone that is right for you.