Things to Know Before Getting Pre-approved for a Mortgage in Washington. Buying a home can be an enjoyable, yet frustrating experience. Because you need to navigate from many obstacles to get a mortgage for your new home. To make your pre-approval mortgage process easier, In this article, we will take a closer look at the pre-approval mortgage process in Washington and how it can make your home buying process easier.
What is Mortgage pre-approval?
In a simple term, mortgage pre-approval is a conditional green light from the mortgage lender that you are able to borrow a certain amount of money for a home purchase. We can also say that the pre-approval loan will guide your decision process or selecting a home; you will know how much you can afford and make your home buying process hassle-free. The mortgage process in Washington is hassle-free and it will be done in a few days.
Five Reasons to Get Pre-Approved for a Mortgage:
- Getting a pre-approval letter can narrow down your home buying process because it will give you an idea of how much you can afford. This saves your time and money.
- Once you get pre-approval letter mostly all real estate agents willing to work with you. In fact, some agents in Washington with the buyers who have a pre-approval letter.
- Pre-approval letters make you an ideal buyer when compared to someone who hasn’t received a pre-approval letter.
- A pre-approval is more involved and gives you a more accurate idea of what a lender will offer in terms of a loan amount and interest rate.
- A pre-approval process provides a rough estimate of how much you might qualify for and comes from a surface level review of financial information. This works to your advantage.
When to get pre-approved for a mortgage?
The best time to seek a mortgage pre-approval is when you think you are ready to buy a house, but before you start spending tons of time house hunting. That’s because it’s not worth falling in love with a home that’s outside the price range you can realistically afford.
Steps of getting a mortgage approval:
- Before trying to get pre-approved for a home loan, first check your credit score and reports. Know your credit score and pull your credit history before the lender does. You can also improve your credit score by paying off all bills. Most lenders in the USA require a FICO score of 620 or above to approve a conventional loan. Lenders typically reserve the lowest interest rates for customers with a credit score above 750.
- Your lender will not review your credit scores and other financial information but also likely to call your employer to verify that you are still employed and to check on your salary. In case, if you have recently changed your jobs, a lender may want to contact your previous employer. If you are self-employed, you need to show your paperwork to ensure the lender that you have a stable source of income.
- Along with financial and employment information, you need to submit documents like driver’s license, social security number, and credit report.
- Once you gathered all the documentation and submit to a lender, he will review it and offer your pre-approval mortgage letter.
The bottom line:
Consulting with the lender for a pre-approval mortgage letter, can save your time and give you a clear picture of how much you can afford. The pre-approval letter shows sellers that you are an ideal buyer when compared to someone who hasn’t not pre-approval letter. So, if you are looking for the Seattle mortgage company, feel free to contact us. We help you in regarding pre-approval letter and related issues.