What is mortgage pre-approval and why should you opt for it?
Shopping for a new home in Houston, Texas can be a very fun experience for most of us. However, if you are serious about buying a new property, you need to talk with a lender, and you must obtain a pre-approval. But what is a mortgage pre-approval?
Simply put, the pre-approval is a process/evaluation of your current debt situation. The lender will see if you qualify for the loan or not. Once you have a pre-approval, the purchase process will be faster and a lot easier. In fact, some sellers prefer to work with people that have a pre-approval, just because the process goes a lot smoother.
Are pre-approval and pre-qualification the same thing?
No, they are not. Pre-qualification is a step in getting the mortgage, and you meet a lender, you talk with him about your liabilities, income, and assets. The lender can offer an estimation in regards to how much you can borrow. The difference between pre-approval and pre-qualification is that the latter one is information. Pre-approval is a process that will help you get the mortgage you want, while the other one is just informative.
How can you get pre-approval?
The pre-approval process is formal. It requires you to complete an application, and then the lender will require you to share specific documents. You will have to pay an application fee upon submission. Also, it’s important to note that the requested documents are required to deliver a proper check on your finances and your overall credit score. This way the lender will know how much money you can get, based on your current income and debt situation. The process is very fast most of the time, in fact submitting the application takes just a few minutes. You will get a reply within a few days most of the time.
What type of documents do you have to share to get fast pre-approval?
- First, you need to share a proof of income. This includes things like an income stub that shows your monthly income and the year-to-date income. You will also have to share 2 year’s worth of W-2 statements, a quarterly statement of all your asset accounts and 2 years of federal tax returns.
- Asset information will also be required here. Investment account statements and bank statements will be requested. Also, you do have to explain any change in your finances, and you need to document Otherwise, it won’t count without a good proof.
- A credit score of at least 620 or above will be necessary for pre-approval.
- Employment verification is requested, mostly because the lender needs to make sure that you have a stable income and can repay the loan.
- Other documents may be necessary, depending on the situation. Your lender may require things like your social security number, state ID card or driver license, as well as your signature.
If you want to get mortgage pre-approval in Houston, Texas very fast, all you must do is to visit Click Here right now. We are here to help you make the pre-approval process fast and easy, so just check out the link above. You will get pre-approved in no time!