Purchasing a home that is right for you and your needs can be a long and daunting process that is only made worse when it comes to the time you have to apply for a mortgage. Finding a house that can accommodate your vehicles only narrows down the housing market further and it can be extremely difficult to find a home that is right for you if you own many vehicles or own a large vehicle.

If you do find your dream home with the right amount of space, you want to know that you can get this as soon as possible. Whilst you can’t guarantee that you will be the highest bidder on the home or win against other buyers, you can get a pre-approved mortgage, so this part is settled before you have even found a home.

What’s a Pre-Approved Mortgage?

A mortgage is pre-approved when you receive an official letter from any mortgage lender stating that you meet all the standards required for a mortgage loan. This will be within a certain price range that will be spoken about before you pre-approve your loan, and this will help when searching for a home. A pre-approved mortgage will be assessed depending on several factors including your credit score, your income, and several other financial indicators. Pre-approved mortgages are also only valid for 60-90 days, so as soon as yours has been approved you need to start house searching or already have some in mind.

Is it Worth It?

There are several benefits of getting a pre-approved mortgage including the fact that you know what kind of house price range you are looking for. The last thing you want to do is find your dream home only to discover that you won’t be accepted for any mortgages and therefore cannot afford the house. This means starting the process all over again, which is a waste of time for everyone involved.

The seller is also more likely to choose you if you already have a pre-approved mortgage, as they know the deal won’t fall through at the last minute due to finances. Being pre-approved can aid you in finding the right loan for you, as there are many different types including VA and FHA. Some mortgage loans come with restrictions on the property that can be purchased as well as the condition of the property. Many require a certain percentage towards the down payment too.

Getting Pre-Qualified

Being pre-qualified is different than getting your pre-approved loan. Before you can begin getting a pre-approved loan, you must know your credit score and check your credit report. You can do this completely free of charge and the sooner you do this, the sooner any issues can be addressed. Some loan companies will not allow you to borrow from them if you have a poor credit score and so you need to look at improving this straight away.

Being pre-qualified means that you have spoken to a lender and have provided them with the basic information that they need to offer you some loans that you may be entitled to. Then you can begin applying for these loans. Never provide false information as you will be caught out and this will only delay the process for yourself. Pre-qualification is all about knowing the lender and knowing what kind of loans you may be entitled to; you should check with several lenders to ensure you’re getting the best deal, and Crediful can help you to do this.

What Documentation You Need

Once you have chosen a lender and want to apply for a pre-approved mortgage, you must gather all the financial documentation you need to speed up the process. This includes paychecks, W-2’s, bank statements from all bank accounts you own, as well as your tax returns from the previous two years. You also need to sign a contract giving permission for the lender to gain a credit report. Your credit score should also be provided at this time. Being pre-approved can take as little as twenty minutes and once they have checked through your documents you will either be approved, approved with certain conditions, suspended or declined.

Gaining a pre-approved mortgage is beneficial for those who need a house that fills certain requirements, such as space for their vehicles. It is worth starting this process early, as it can aid in narrowing down your choices and getting the house of your dreams.

Tagged: pre-approve mortgage

Looking for a Home that Can Accommodate Your Vehicles? Here's What You Need to Know about Pre-Approved Mortgages