How to get preapproved for a mortgage
Buying a home can be one of the most exciting and fun experiences in your life but it can take an ugly turn if you are not prepared. Lining up your financing is the first thing you should do when you decide to purchase a home. Here are some tips to help you obtain your preapproval so your home search stays smooth.
- How to find a lender
Your Realtor can recommend local lenders, you can use your personal bank, or you could ask for recommendations from friends and family.
- Yes, you need a preapproval. No, you shouldn't just look at homes and then get approved.
When you go to the store you know how much money you have and how much you can spend. This helps you make decisions on what to buy and what can wait. When you purchase a home it works the same way. Before you go out "shopping", you need to know how much money you have to spend. Your lender will tell you how much your monthly payment will be, review your credit with you, and go over the different loan programs. This is a much needed tool before you start negotiations.
- How long does it take to get approved?
Depending on the lender, you can get a preapproval letter within a few hours to 24 hours. The key is to provide them with the information they need in a timely manner.