How to Get PreApproved for a Mortgage

Getting pre-approved for a mortgage is an essential part of buying a home. In this post by Patriot Title Agency in Medina, we’ll go over the essentials of the pre-approval process and when you should start it. 

Why Should I Get Pre-Approved?

There are many reasons why getting pre-approved for a mortgage is a great way to increase the chances of getting the home you want by making your offer more attractive to the seller. It’s also best to go through the pre-approval process before you find a property you like so that you’re ready to put in an offer as soon as possible when you do. This process can also unearth any mistakes in your credit report; that way, you can fix them before you find the perfect home.

Being pre-approved for a mortgage can help you expedite the process of buying your new home. Let the title experts at Patriot Title Agency, Inc. help you with full title and escrow services in Columbus, OH. Call them today at 330-479-3000, and a friendly agent will answer all your questions.

When Should I Look For a Pre-Approval?

The pre-approval process could take up to ten days to be completed. That’s why you should look to start the process before you start looking for houses. That being said, you should wait until just before you’re ready to start looking for a home, as a preapproved loan will usually be valid for 90 days or three months. Also, remember that starting and pausing your home buying process could hurt your credit score.

Buying a new home is a significant investment; that’s why having an expert title agency in your home-buying team like Patriot Title Agency, Inc. can make the process much easier. Call them today at 330-479-3000 and get all the information you need from an expert title agent.

What Do You Need to Start the Process?

A mortgage pre-approval process starts by filling out an application. In this application, you’ll include your social security number, employment information, income, and other essential documents. If you’re applying with a co-borrower or with your spouse, you’ll also need to present their information to qualify for a mortgage. Remember that any inquiry on your credit report from a mortgage company counts as a hard inquiry, and it could impact your credit report.

Mortgage and Property Information

The pre-approval process can look different for each lender, but let’s look at some of the most common steps most of them follow. First, you’ll need to fill in an application for the type of mortgage you’re looking for, this will include the terms of the loan, the interest rate, and the length of time to pay it back. Then you’ll need to give them information on the property like the property’s legal description, the year it was built, if it’s a new construction, and the type of residency it will be (primary, secondary, or for investment).

Personal and Financial Information

As stated above, when applying for your loan, you’ll also need to provide personal information such as SSN, full names, dates of birth, marital status, number of dependents, and places of residence of you and your co-borrower or spouse. At this stage, you’ll also have to provide current and past employment information, monthly income, and detailed housing expense information, including things like rent, mortgage payments, homeowner’s insurance, property taxes, etc. All of this information is so the mortgage company can know how much they can safely loan you. Finally, the mortgage company will also want to have information on current balance amounts on checking and savings accounts and other types of financial records like stocks, bonds, and retirement savings. You’ll also need proof of funds for closing and down payments, as well as information on other loans like student and car loans, as well as other debts you might have.

Legal Information

Lastly, you’ll need to provide information on any bankruptcies, foreclosures, pending lawsuits, or delinquent debts you might have. You’ll also need to provide information on whether or not you’re a U.S. citizen or a permanent resident of the United States. With all this information, the mortgage lender you chose will decide whether to approve your application and hopefully, you’ll be closer to having your dream home!

Having a title agency as a part of your home buying team can make the process much easier to navigate. Call Patriot Title Agency, Inc. today at 330-479-3000, and one of their expert agents will answer any questions you might have.