Tower Loan Becoming Preapproved For Home Shopping
In a prevailing dull real estate market and tough economic conditions, obtaining a mortgage is not as easy as it used to be in the days of boom in the property market. In today's market conditions, one of the most important steps in acquiring a home loan at competitive rates is to obtain a letter of preapproval. Preapproval effectively means that a mortgage lender has confirmed that you are financially approved for a mortgage over a certain period of time for a particular amount.
Prequalified vs. Preapproved
Many people become confused between getting prequalified and getting preapproved for a home loan. If you become prequalified for a home loan, it merely means that you have informed the prospective lender of your annual income and your credit and debt status, and on the basis of this information the lender has estimated the amount that you can afford.
Getting preapproved is a more intensive exercise. In this case, the lender will analyze your credit report, assess your debt to income ratio, and evaluate your financial position comprehensively. Therefore, a preapproval brings you much closer to getting the actual home tower loan short term loan companies no credit check.
Advantage with Preapproval
During the process of home shopping, you will have two advantages for being preapproved for a tower loan payday loan direct lender no broker. In the first place, the preapproval exercise will help you determine the amount that you can financially afford. Secondly, you may be able to get more competitive price for a home because the seller is likely to prefer a preapproved buyer over someone who is not preapproved.
Sellers may be willing to offer a better price to a preapproved buyer because it is more likely to result in a successful sale. The surety of a complete sale is much lesser if the buyer is not preapproved. In a slow real estate market, sellers usually do not want to take the chance of missing the sale, and are likely to sell to preapproved buyers even at a slightly lower price.
Talk to a Few Lenders*
When you are seeking a preapproval, it is always a good idea to check out a few reputed and reliable mortgage lenders, rather than focusing only on one lender. This will help you receive the best mortgage package offers suited to your needs. You can compare the terms, conditions and pricing of the loan packages.
The home shopping process should ideally begin once you are preapproved. In such case, you will know exactly what price range of homes to look for within your financial limits. You should also know that the preapproval process does not bind you to specific lender. Preapproval does not obligate the buyer to receive a tower loan payday loans no credit from a particular lender.
Be Ready with your Financial Status Details
The preapproval process involves a review and verification of your annual income, debt situation, assets, and credit position on part of the lender. The lender will inform you the specific financial documents required for the preapproval process. Stay ready with such information and documentation to ensure a quick and smooth preapproval.
It is also advisable to maintain a look on your credit score during the preapproval process. Make sure that the FICO score does not fall due to unnecessary reasons such as applying for several credit cards within a brief period of time. A lower FICO score will reduce your eligibility for credit and increase the costs and other terms of your prospective home loan.