Tuesday, August 24, 2010

Do you normally get approved for a mortgage before looking for a home?

or just pre-approved? How long is the process to get approved and what do the lenders usually request?Do you normally get approved for a mortgage before looking for a home?
It is impossible to be fully approved before you find a home. You can get pre-approved, there is a lot that goes into the approval process besides your credit and income. IE title, appraisal, etc.


The process shouldn't take any more than a month in normal circumstances. You should have your last 2 paystubs and last 2 years of w2's, last 3 mos of bank statements.Do you normally get approved for a mortgage before looking for a home?
Normally you need to get pre-approval before you go house hunting.





Pre-approval is just a phone call away. You answer a couple of questions about your income and debt (minimum payments of all credit cards and anything else you pay for on time (car loans, student loans, etc) and have your social security numbers and full names ready to offer so the loan officer can run your credit. You may have to wait for a call back, but pre-approval will happen within a day.





Full approval take a bit more time and effort. For full approval you need full documentation of all income and a sales contract, title search, clean termite inspection and appraisal will be required too.
I got preapproved by my mortgage lender first,, that way I knew what price range I could look for. Make sure you factor in homeowners insurance, and taxes into your monthly payment. Those the realtor can show you proof of what they are for any house you are interestd in.
I got preapproved first and he told me things I could do to make my interest rate go down and no money out of pocket. He did tell me I can start looking out for nice houses in my price range, but not spend a lot of time on it. After I clean up one debt in my credit I will be good to go!
normally that will be the best thing to do so that you know how much house you can afford.I think it take over 2 weeks also you will need prove of income,.

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