Home Loan Pre-Approval (GUIDE)

Home Loan

Are you looking out for home loan pre approval to manage your financial crunches? Owning a house is probably, the biggest dream in everyone’s life. Buying a house is not just a huge investment but, it is one of the best means to register an asset for lifetime. A pre sanctioned house loan would surely give you support in handling your budget. The foremost step is to get a pre-approval letter from the lender before seeking for homes. You should not be confused between pre-approval and pre-qualified letter. How can you identify then between the two?

‘Pre-approval’ home loan is a procedure carried away by you and the bank officer in order to ensure the loan amount. For this, you just have to submit certain documents and get the verification done by the loan officer. Some of the major documents are W-2s, federal tax returns of the last two years, bank statements of last three months, pay stub, details of savings and investments accounts and the loan application. As soon you get all the documents verified, the lender gives a home loan pre approval letter. The amount for pre-approval is ascertained by the officer depending on your financial status. You may also, find the rate of interest mentioned on the loan offered. The entire process of home loan pre approval would take a period of three and six months.

Once you have got the home loan pre-approval it becomes very easy to select your dream house. It shows your ability and willingness to buy a home. The pre-approved home loan would not only make you financially very strong but, would also give you a great confidence in making the right decisions. The pre-sanctioned home loan helps in narrowing your search of house within your budgets. The best part of home loan pre approval is that once, you finalize the deal with your real estate agent the remaining process becomes faster.

You can also, seek for REO properties which, are also known as bank owned houses. You would have an upper hand over other applicants as, it is equivalent to cash offer for the banks. So, what are waiting for get the extra benefits by availing home loan pre-approval. This would not only make the repayment easier but, would accelerate the process of buying a house. Save time by getting the pre approval home loans and also, enjoy the power of negotiating the rates with the real estate agents.

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