How Do I Get Pre Approved For a Mortgage?
Get FREE no-obligation information
on getting approved for a mortgage!
You must get pre approved before looking for your new home
Getting pre-approved for a mortgage is an important step in the homebuying process, as it gives you a clear idea of how much you can afford and strengthens your position as a serious buyer. Here’s a general guide on how to get pre-approved for a mortgage:
- Check Your Credit Score:
- Obtain a copy of your credit report from major credit bureaus (Equifax, Experian, and TransUnion).
- Review your credit report for any errors and take steps to correct them.
- A higher credit score generally improves your chances of getting pre-approved and may result in better interest rates.
- Improve Your Credit Score (if needed):
- Pay off outstanding debts.
- Avoid making large credit card purchases before applying for a mortgage.
- Make all your bill payments on time.
- Gather Financial Documents:
- We will require documents such as pay stubs, W-2s or 1099s, tax returns, bank statements, and proof of additional income.
- Self-employed individuals may need to provide additional documentation, such as profit and loss statements.
- Calculate Your Debt-to-Income Ratio:
- We will evaluate your debt-to-income ratio, which is the total amount of your monthly debts divided by your gross monthly income.
- A lower debt-to-income ratio improves your chances of getting pre-approved.
- Understand the Terms:
- Review the terms of the pre-approval, including the interest rate, loan amount, and any conditions.
- Understand the difference between pre-qualification and pre-approval; pre-approval is a more detailed and thorough process.
- Get Pre-Approved:
- submit a pre-approval application.
- Provide all necessary documentation and information.
- We will review your financial information and issue a pre-approval letter, which states the maximum amount you can borrow.
- Use Your Pre-Approval Wisely:
- With your pre-approval in hand, you can confidently shop for homes within your budget.
- Sellers may take your offer more seriously if they know you’re pre-approved.
Remember that a pre-approval is not a guarantee of a mortgage loan, and the final approval process will involve additional steps. It’s essential to stay in close communication with your lender and provide any additional information they request throughout the homebuying process.
How Do I Know if I Qualify for a Mortgage?
As a rule of thumb, it may be harder to qualify for fixed-rate loans than for adjustable rate loans. When interest rates are low, fixed-rate loans are generally not that much more expensive than adjustable-rate mortgages and may be a better deal in the long run, because you can lock in the rate for the life of your loan. ARMs may be a good choice if you plan on only being in your home for less than 5 or 7 years.
Our Pre-Approval Process is Quick & Painless
The traditional 30-year fixed-rate mortgage has a constant interest rate and monthly payments that never change. This may be a good choice if you plan to stay in your home for seven years or longer. If you plan to move within seven years, then an ARM be a better choice.
We’re here to make the home loan process a whole lot easier, with tools and expertise that will help guide you along the way, starting with our FREE Mortgage Pre-Approval Calculator
We’ll help you clearly see differences between loan programs, allowing you to choose the right one for you – whether you’re a first-time home buyer or a seasoned investor.
The Mortgage Loan Pre-Approval Process
Here’s how our home loan process works:
- Receive options based on your unique criteria and scenario
- Compare mortgage interest rates and terms
- Choose the offer that best fits your needs
Federated Mortgage – Pre Approval
Jumbo & Super Jumbo Loans
FHA, VA, Government Loans
Terms from 5 to 30 Years