Steps To Buying A House: Get Prequalified For A Mortgage
Now that you have a sense of what mortgage lenders are looking for a home loan applications and you have a general understanding of your financials, the next step in buying a house is getting prequalified for a mortgage.
Here are the 5 steps to buy a house: get prequalified with a mortgage lender.
- Go online call or visit a mortgage lender and have a conversation with them about your full financial situation. Yes this also means letting them pull copy of your credit report (no it will not make your credit score go down).
- Discuss mortgage payments, down payment and potential purchase price
- Provide them your financial documentation.
- Give them at least 24 hours to review your financials and ask them to run an automated underwriting of your loan package (this is the anchor preapproval needed to make an offer on a house)
- Lender writes you a preapproval letter to go look at houses
When you are ready to buy a house, a preapproval letter is needed so your real estate agent so you can make an offer on your behalf to buy the house.
A prequalification is a cursory review of your financial situation. The preapproval is based what the mortgage lender actually sees and your lender can then say “Based, on what we can see you are preapproved for X, with X down payment.”
A mortgage preapproval is not an underwrite, meaning that once you find a house, the mortgage lender still needs their underwriter, the decision-maker to issue you an official loan approval.
Follow the steps to buying a house: get prequalified for a mortgage first.
By taking care of how much you can actually qualify for on the front end, you eliminate the time frame it takes you to get the loan set up with the lender.
You can find a solid mortgage lender right here on our website. Mortgage lenders come form of direct lenders, credit unions, brokers and banks.
Each mortgage company has access to the interest rate market and for the most part, has the same level of control over how your mortgage loan and interest rate is priced. Internet lenders because they are Internet based only, in many cases, are able to undercut the competition due to the way their pricing structure and business model. Internet lenders as a result, can offer you a competitive combination of rate and cost. Begin buying a house today by getting prequalified for mortgage.