Pre-Approval
As you consider buying a home, you may want to get pre-approved for a mortgage and not just pre-qualified.
To get pre-qualified, you only submit credit, income and debt information voluntarily to a mortgage broker or lender. That means the resulting estimate of the maximum mortgage and home that’s affordable is exactly that — an estimate.
Before you can get pre-approved, however, you must allow their lenders to pull credit reports*, check debt-to-income ratios and perform other underwriting steps. That puts you much closer to obtaining a loan and locking in a rate and term.
The preapproval letter can be shown to listing brokers when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.
*** Obtaining your credit report is easy. All you have to do is request one. Fees range from $5-$20, but some states allow you to receive a free one. There are three major credit-reporting companies:
Equifax (http://www.equifax.com/)
Experian (http://www.experian.com/)
Trans Union (http://www.transunion.com/index.jsp)
Call or send me an email if you’d like to discuss what mortgage programs are available to meet your needs. I can refer you to lenders with a history of offering competitive programs and delivering promised rates and terms and give you a list of records you’ll need to bring with you.
Krzys Kosiorek
REALTOR
Licensed in CT
North Star Real Estate, LLC
72 Queen Street
Southington, CT 06489
C- 860-539-2194
O- 860-621-0077 X339
F- 860-426-9962
[email protected]
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