How to Get Pre-Approved for a Mortgage
When it comes to buying a new home, people often underestimate just how competitive today’s real estate market can be. Don’t be fooled by what you see on popular shows on the HGTV network; in most cases, purchasing the home of your dreams isn’t as simple as touring a house, telling your agent you want to make an offer, and moments later, the house keys are in hand. On the contrary; that house of your dreams is often the house of your dreams to several other people, and all of them are willing to do whatever it takes to make the sellers accept their offer instead of yours.
In an environment as intimidating as this, you need to do whatever it takes to give yourself a competitive edge in today’s real estate market. That’s why it is essential to be pre-approved for a mortgage before aggressive house hunting beings. But being pre-approved means knowing what to expect and being as organized as possible before you begin the process. Here are a few things you’ll need to get pre-approved for a mortgage.
Personal Documentation and Identity Verification
This is an easy one-when seeking pre-approval, make sure that you have your signature, your social security number, and your driver’s license on hand. Simple enough!
Proof of Income
According to Investopedia, bringing recent pay stubs and W-2 tax documents from recent years will be instrumental in ensuring you are pre-approved for a mortgage at the start of your home search. This, along with proof that you are employed at a reputable company, proves that you have a reliable and frequent source of cash coming in that show you can be trusted to make your monthly mortgage payments for years to come.
Good Credit
The better your credit score is, the lower your interest rate will be when it comes time to paying mortgage payments. Investopedia states that most lenders today require a minimum FICO score of 620 in order for a potential buyer to be approved for a conventional loan. If you REALLY want a low-interest rate, your credit score should be in the range of 760 or above. Think about it this way: the lower your credit score, the higher down payment on the home you will be required to make. Luckily, lenders, like your friends at Pacor Mortgage will often work with borrowers with a low or moderately low credit score and suggest ways they can improve their score.
Fortunately, getting pre-approved for a mortgage is easy when you partner with Pacor Mortgage. Pacor Mortgage is your best resource when it comes to mortgage financing. For over 32 years, our expert real estate team has helped homeowners like you navigate the challenging and always changing real estate market. We would be honored to help get you in the home of your dreams and stand out from the competition. Visit our website to create your account and start closing your loan in as little as 15 minutes.
