What You Need To Know About Mortgage Pre-Approval
What You Will Need for Mortgage Pre-Approval
Pre-Approval is a determination of how much house you can afford, so there are several components that need to be considered by your lender that will determine everything from your interest rate, to the type of loan that is best for you, to your final loan amount. Your lender will need your credit history, your employment history, your FICO score, your taxes, and your profit and loss statements if you are self-employed. If your credit or FICO scores aren’t where they need to be to borrow money for a home, your lender can make suggestions for you to clean up your scores.
Will Pre-Approval Lower My Credit?
The short answer is yes, and no. Hard inquiries such as pulling credit reports from Experian and TransUnion can temporarily lower your credit by a few points, but that is put into special consideration by other lenders who understand that the buyer is going through a pre-approval process. According to Credit Karma:
“Your lender will pull your credit reports during the pre-approval process. This is known as a hard inquiry and will usually lower your credit scores by a few points. But if any other mortgage lenders check your credit within 45 days of the first credit check, those checks won’t count as additional hard inquiries.”
How Long Does It Take to Get Pre-Approval?
According to credit.com, getting pre-approved for a home loan takes anywhere between one and three days. Working with a local mortgage lender instead of an online lender can help make navigating the process much simpler. A local mortgage lender will typically take more time to understand your particular situation and make adjustments to your expectations and options so that you get the best deal for your priorities, whether that is the lowest possible monthly payment or the lowest possible interest rate.
Should I Get More Than One Pre-Approval?
Mortgage rates at historic lows can virtually guarantee that you will not see a big rate difference between one lender or another. It is fine to get a second opinion, but doing much more than that is a waste of time and money.
If you are looking for a local lender who will take the time to work with you personally to find the right path to homeownership with personal service and professional advice, call Brittany Fitch with InterTrust Mortgage today.