One of the best things you should do to give yourself the best possible shot at getting a home is getting a pre-approved mortgage loan. In this fast-paced sellers’ market throughout the DFW area, it is imperative that you are pre-approved before you start looking into purchasing a home. Many agents will not take clients out to look at homes without first being pre-approved, and when you are ready to start putting in offers, you run the risk of not being considered without that pre-approval.
Pre-approval, as opposed to pre-qualification, signifies that the loan application has been taken through a rigorous procedure and can speed up the final mortgage approval. The pre-approval is a promise from a lender saying that you are in fact qualified to borrow up to a certain amount of money.
When you go through the pre-approval process, a lender looks closely at your credit history and will verify information including income and job. Once you’ve been pre-approved, the lender will send you a pre-approval letting indicating that your loan should be approved. Once you find a home that you want to purchase, you’ll put submit your offer, if it’s selected and you go under contract you will need to submit additional documentation which includes the purchase contract, preliminary title information, appraisal, additional income and asset documentation.
If you do not go under contact within 60-90 days of receiving your pre-approval letter, many lenders will ask you to go through the process again to keep your information up-to-date. When you’re ready to start the process of going through pre-approval, I can suggest several lenders including Frank Ballester with Guaranteed Rate Affinity.