Get Pre-Approved

If you ’ re ready to make your dream of owning a home a reality, you ’ ve probably already heard that you should consider getting preapproved for a mortgage. It’s time to understand exactly what that means and how it might help you.

WHAT IS MORTGAGE PRE-APPROVAL?

Preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place You will complete a mortgage application and the lender will verify the information you provide They’ll also perform a credit check

There are many different factors that the mortgage lender will use to calculate your pre-approval. It is always best to be prepared, so here are a few documents you can gather for when the time comes:

Lenders look at every detail of your finances when granting preapproval You might be asked about a car loan payment you made with a credit card, for example Be prepared to answer lender questions as soon as they come up

Conventional Mortgages

Can be used for your primary home or vacation or investment property

Your down payment can be as little as 3% for qualifying loans

Stricter qualifications that require a minimum credit score of 620 & low DTI

Jumbo Mortgages

For borrowers who need to take out more money than the federal limit for a standard mortgage

You can borrow more for a more expensive home

You’ll need a large down payment, typically between 10 – 20%

GOVERNMENT-INSURED MORTGAGES

Available through the FHA, VA and USDA, these make homeownership more accessible for qualified borrowers

It is possible to save on interest and down payments

You must meet specific criteria to qualify

FIXED-RATE MORTGAGES

These loans benefit from predictable monthly payments

Monthly payments don’t change over the life of your loan, making it easier to plan a budget.

You may end up paying more in interest over time if the rates are high.

ADJUSTABLE-RATE MORTGAGES

Low initial interest rates mean big savings early on

Gives lower interest rates for the initial introductory period.

If the rate increases, it can dramatically increase your monthly payments