What is a Pre-Approval & Why Is It Needed?
Many lenders claim that if you’re not pre-approved for a mortgage, you don’t stand a chance in the housing market. What does that mean? Read more below!
A mortgage pre-approval means a Mortgage Loan Officer has looked at your finances—your income, debt, assets, and credit history—and determines how much money you could borrow for a house loan and how much you can afford to pay per month. Once a Cream City Mortgage lender has pre-approved you for a mortgage, you’ll get a letter you can then take to sellers. This letter shows sellers you’ve already started working with a lender, and that the lender is willing to work with you. It gives sellers peace of mind to know they won’t be wasting their time with someone who couldn’t afford their house in the first place.
A mortgage pre-approval gives you confidence in your search. When you know how much of a mortgage you can afford, you can look for houses within your budget. That way, you won’t have to deal with the heartbreak of falling in love with a house only to discover you can’t afford it. It also puts you on the fast track to closing. Because most of your information is in the lender’s system, a mortgage pre-approval accelerates the loan process once you make an offer.
Some documents that may be required for a pre-approval:
Proof of income
W2
Asset Statements
If self-employed, tax returns
Contact us today - Cream City Mortgage can get you started on the pre-approval process as well as break down the details further for you!