How can you find out if you can get the finacing for a home loan?

Question

Me and my wife are wanting to buy a house but we would like to know if we can get approved for a home loan before we go shopping

Answer 1

All banks just about offer the same products and loan programs with the different qualifications in each of their programs.

Your interest rate is based on your credit score and how well you have paid your consumer debt over time, not by the company that does your loan or even complete the paper work for your mortgage application.

In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.

He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.

The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.

When you speak with the mortgage broker you will need the following documents to complete the loan application

#1 One month of pay stubs for each person that will be on the mortgage.

#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.

#3 Two years of federal income tax along with the W-2 that match.

Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.In this pre-approval letter will be the amount of house you are qualified to purchased.

Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.

Now make sure before you get your pre-approval you and your mortgage broker go over all your options as to the mortgage programs you qualify for, the interest rate, monthly payments.

You should also get a Good Faith Estimate (GFE) which will indicate the cost you will have to pay for getting this loan. It will also indicate the amount of your down payment.

Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.

Your mortgage broker will now order an appraisal to show proof of the property value.

The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.

After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.

Before signing any loan docs make sure they say exactly what you and your mortgage broker went over when you decided on what mortgage program was best for you.

I this has been of some use to you, good luck

"FIGHT ON"

Answer 2

Yes and Brilliant! I hope that means that you fully understand the sheer power that it gives you to be in the position of saying we are all set to go. We can close as quickly as you like. Because after you are approved all that is left is to find the house, come to agreement (contract), do the inspections, get the bank appraisal, title work and close! It could happen in as little as a couple of weeks. Some sellers love that idea (they don't want to wait or want to have to make another mortgage payment-see?and it could put your offer as the one they take even if it's lower because they know you are qualified(approved to close!)for fast closes. Good luck!

Answer 3

Get pre gualified or pre approved.
Pre qualified will just tell you if you meet debt ratio and income levels for the loan based on what you tell them so they will estimate how much you can qualify for.
Pre approved runs credit reports and confirms income so when you find a house in your range you are ready to get financed.

Answer 4

Go to your bank to get a pre-approval that way you will have a ball park figure on how much you can borrow. You can also apply online at many financial companies.