While pre-approval doesn’t automatically qualify you for a mortgage loan, it is a good first step in the right direction.
Pre-qualification and pre-approval are terms you’ll hear often in the mortgage industry, often used interchangeably. However, there are a few key differences between the two. Pre-approval goes more in-depth than pre-qualification, as it pulls your credit score and provides more accurate insight. You’ll want to make sure you’re ready to buy, however, since pre-approval letters expire, usually within 60-90 days.
While getting pre-approved may seem like another step that you don’t necessarily need to do, it proves you’re serious about purchasing a home and helps you stand out to sellers. In addition to having a competitive edge, a mortgage pre-approval can help streamline your shopping experience, since you’ll know exactly what you can afford and thus limit your browsing. You won’t waste any precious time looking for homes outside of your budget.
Another key benefit is that you’ll also be one step ahead when it comes to closing, so that process can likely be expedited. Since you’ve already filled out much of the paperwork and verification has been completed, the closing process won’t take as long as with someone who hasn’t been pre-approved.
To obtain a mortgage pre-approval, you’ll typically need to provide the following:
- Proof of Income: pay stubs, W-2 forms, tax returns, etc.
- Asset Documentation: statements for your various accounts
- Employment Verification
- Identification: valid form of government ID
- Social Security Number
- Every address you’ve lived at in the past two years
While pre-approval doesn’t automatically qualify you for a mortgage loan, it is a good first step in the right direction. Plus, you’ll have peace of mind knowing upfront what your budget truly is – which can save you from heartbreak and hassle down the line. If you need help getting the process started, reach out to me today and I can help find the right option for you! QCBN
By Greg Riordan
Greg Riordan is a loan officer with Legacy Mutual Mortgage. For additional information or to get in touch with Greg, visit www.gregriordan.com or call 928.427.5156. You may find his office at 325 W Gurley St #102, Prescott, AZ 86301. Greg cares about the people that choose to trust him with the biggest asset in their lives – their home. He will give straight, honest answers with exceptional advice whether you are refinancing your home to pay off debt, lowering your rate, reducing the length of your loan or looking to purchase your first or next dream home. Greg Riordan, NMLS # 832841 | Gardner Financial Services, LTD., dba Legacy Mutual Mortgage, NMLS #278675, an Equal Housing Lender.
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