September 5th, 2014 9:16 AM by Jackie A. Graves, President
Getting pre-approved for a loan can make the
whole home-buying experience go smoother.
When you’re pre-approved, REALTORS® are
more likely to want you as a customer, sellers are more likely to accept your
offer, and—by knowing what you can afford—you’ll know what homes to look at.
And it doesn’t have to be a hassle
either. With these easy tips, you can get a pre-approval without ever
leaving your sofa.
Get Your “Pre-Approved” Facts Straight
Applying for a pre-approval doesn’t require
nearly as much paperwork as applying for a mortgage, but you’ll still need to
be as accurate as possible if you want to make sure you’re getting the best
deal—and the most offers.
Start by gathering the information you’ll
purchase cost. If you have a home in mind, look up the
seller’s asking price to get an idea of how much you’d need to borrow.
amount. Knowing how much you
can put down will have a big effect on your pre-approval.
information. You’ll need basic info like Social Security
numbers and driver’s license numbers for anyone on the application.
income. Gather recent paystubs, tax returns and
paperwork from your employer.
assets. Gather bank statements, retirement
accounts, CDs and other documents showing your assets.
Estimate Your Credit Score
While any prospective lender will pull your
credit score, you’ll also be asked to estimate your credit score on your application.
To make things easier, you can order a copy
of your credit scores for a small fee from one the three credit
bureaus—Equifax, TransUnion and Experian—before you apply for a pre-approved
loan. By law, you’re entitled to one free credit history report a year from each of the credit bureaus.
You can also use your credit report to make
an educated guess about your credit scores. For example, if you have low-to-no
debts, active credit lines and a history of timely payments, you probably fall
in the “good” credit score range.
Once you have your information and credit
scores together, you have two options to apply for a pre-approved loan. If you
have a particular lender in mind, you can visit the lender’s direct website to
see if you can apply online.
Many lenders have this feature, but you’ll
have to fill out an application for every lender you want to use.
If you want to go the faster route, try a
pre-approval service like the one featured on therealtor.com® individual
listings page. By checking the box that says, “I want to get pre-approved by a lender”,
you’ll be connected with up to three lenders right away.
Before you apply online, read through the
company’s privacy settings. Look for companies who state this information:
Clearly list how your personal information
will be used
Explains their pre-approval process
Guarantees not to sell your personal
information to third-party companies or vendors
Knowing what you can expect while getting
pre-approved will keep your identity safe.
By: Angela Colley | To view the original
article click here