Being Pre-Approved

Why 'Pre-Approval': * You know the terms of the financing, (how much down, loan amount, interest rate and payment) * You know the conditions that you have to provide to obtain a mortgage * Your financing is secure so to speak You are telling everyone that you are serious about buying, you just need to find the right property. The seller gives much more weight to a 'Pre-Approval' over a 'Pre-Qualification', as does the Real Estate Agent. What to be aware of: Most Mortgage Lenders can now provide you with a 'Pre-Approval' based on the information you give them within about 45 minutes if they have the automated online loan approval systems. Normally all you have to show them is your current Pay Stub(s), Bank Statement(s) and a W-2(s), (if your income situation is more complicated see the article, “Making Loan Application”). • When you receive your 'Pre-Approval', make sure that you understand how long the pre-approval is good for, normally 90 days. • What are the conditions of the loan approval, i.e. what do you have to provide to be able to obtain this loan. • Are the Terms (Interest Rate, Loan Amount, Payment, Number of Payments) locked in? When you get Pre-Approved a credit report is pulled automatically. Get 'Pre-Approved' by one Lending Institution. Other wise your credit risk score has the possibility to decline each time you have a different lender provide you with a 'Pre-Approval'.

Jan.12,06 12:12 PM

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