Basic Ways How to Get Mortgage Pre Approval

January 15, 2022

Getting a mortgage is a tedious process. It can take days, weeks or even months to get pre-approved. But there are some ways to Get Mortgage Pre Approval Fast and easier.

Get Mortgage Pre Approval Faster and easier!

How to Get Mortgage Pre Approval Fast #1: Communicate with a Bank

The bank should know you before you walk in. You can get Mortgage Pre Approval over the phone by speaking to someone at the bank who handles mortgages. They will ask for information like your pay stubs, checking account information, and details about any other assets you might own (like stocks, bonds, etc). If they approve you, then they may tell you how much money you’ll need for your down payment and what kind of rates and terms they offer.

How to Get Mortgage Pre Approval Fast #2: Fill out an online form with your lender

You can also get prequalified online by filling out an online form with your personal information like your income, assets, and credit score. Through the process of pre approval, you may be able to get approved for a mortgage before you even go house hunting.

Pre Approval is when a lender agrees to give you the loan amount that is needed for your purchase based on your current situation. This option can make it easier to find a home because there is less need to look around at houses and see which ones are in your price range. You should be sure that the home you are purchasing can fit into your budget before applying for pre approval.

How to Get Mortgage Pre Approval Fast #3: Prepare All Necessary Documents

Proof of earnings (and supplemental income, if applicable), including W-2 statements and federal income tax returns from the previous two years, as well as pay stubs from the previous 30 days that show current and year-to-date earnings.
Property proof, such as bank statements and investment account statements from the last 60 days
Contact information for the employer
a photocopy of your driver’s license or other government-issued photo identification
Long-term debt documents, such as car loans, student loans, or existing mortgages
Existing property information, including current taxes, homeowners association dues, insurance, and liens.
Price of the home you want to buy
Estimated homeowners or condo association dues on new property (if applicable).
Purchased property type, such as a single-family home
All parties signed the sales contract.
Downpayment
You may be asked to provide additional documentation if you are self-employed.

How to Get Mortgage Pre Approval Fast #4: Prepare Other Mortgage Documents

In addition to the standard things on the mortgage documents checklist, here are some frequently requested documents that may or may not apply to you.

Divorce Decree: If you are counting parental rights or alimony as income, you must show the court order as well as your bank records proving you have been getting it.
Bankruptcy: If you have had a bankruptcy within the last 7 years, you must submit all bankruptcy papers to your lender, including the schedules and discharge date.
Home Sales Contract: If you are selling your current home before purchasing a new one, you may be required to provide the full sales contract for the house being sold.

Mortgage Pre Approval Potential consequences

Almost any prospective home buyer will benefit greatly from the preapproval process. In terms of the transaction, a lender’s support can strengthen any purchase offer that the buyer submits. Furthermore, for a buyer’s personal finances, the steps involved in pre approval can help a buyer better understand the implications of various payment amounts—both upfront and monthly.

However, these pre approval benefits are subject to certain important conditions that buyers should be aware of.

Mortgage pre-approval will expire after a specified time period

Personal financial circumstances that support a lender’s willingness to extend a mortgage to a buyer can change over time. As a result, mortgage pre-approval will expire after a specified time period, such as 90 days.

If the buyer has not yet signed a contract, a lender must go through the pre approval checklist again, using updated financial data as needed. Because of these considerations, pre approval does not guarantee a loan or any specific terms. The exact circumstances at the time the buyer requires the funds will determine the mortgage that the lender essentially extends.

Buyers are strongly advised, for these reasons, to keep their personal finances as consistent as possible as they approach a purchase.

Changing jobs, opening new accounts or lines of credit, or relocating large sums of money can all cause confusion and uncertainty about the buyer’s financial situation. When such changes are unavoidable, buyers can mitigate their impact by maintaining constant communication with the lender. Any documentation pertaining to the events should be saved and forwarded by the buyer.

So, why should you get pre-approved? Because you’ll have a better idea of your budget and will have more bargaining power as a pre approved buyer. You’ll send a strong signal to sellers that you’re a potential customer making a serious offer.