If you are starting your home search as a serious buyer, you want to consider getting pre-approved for a home loan. It requires a bit of work upfront but can streamline the process and make purchasing your home that much easier in the end.
What does it mean to be pre-approved?
Getting pre-approved means that your lender has reviewed your information in enough detail to approve your home purchase. They typically put a cap to the limit that you can borrow but guarantee that you will be approved as long as nothing in your financial situation changes.
Getting pre-approved is for you as the buyer and not designated for a specific home.
You will still need to provide additional documentation and go through the home buying process to get an official approval and clear to close. This can include greater detail about some financial information, such as your expenses and income. It also means getting more information about your house to make sure that it meets all of the requirements that your lender or mortgage program has set.
What do I need to get pre-approved?
Your lender will give you a specific list of documents and information that they need to review and process your pre-approval. These almost always include:
