A mortgage preapproval is most valuable when you can get it prior to your home search. Provided by a lender, it determines how much of a mortgage you can afford. Your credit history, income, assets and debts will be reviewed in order to arrive at a price point for homes you can comfortably consider buying.
Having a mortgage preapproval in hand when presenting an offer to a seller demonstrates to that seller your serious intent to purchase with the ability to close on the sale. Even though you have been through the process to get preapproved, the approval is not a guaranteed commitment to lend. The property you select will still have to appraise for the negotiated sales price, and you will have to qualify for whatever interest rate and terms you chose.
To obtain a loan preapproval, you need to meet with a lender, who will ask you about your financial history and pull a credit report. Your credit score will be the most important factor in determining preapproval qualification. The lender will also want to verify your income and assets. Be prepared to provide pay stubs, 1099s, evidence of any other sources of income and bank statements. This proof of income and assets adds strength to the preapproval letter the lender will generate for you. It also helps in deciding which kind of loan works best for you.
Please contact me. I am here to help you get the home-buying process started by guiding you through the loan preapproval process.