How To Get Pre-Approved for a Mortgage Home Loan

How do you get pre-approved for a new mortgage so you can purchase a new home or investment property? Or refinance your existing property?

Being organized and having your personal finances in order is a great start. It will give you the best chance of getting qualified for a new mortgage.

In this guide, we’ll review the steps required for getting qualified for a pre-approval. We’ll also cover what to expect during the application and approval process. And why you want to work with a mortgage broker.

Let’s Begin!

Do the following before you start applying to any lenders for a loan.

Six Steps To Help You Get Qualified

The order of these steps is not important, just make sure you understand each one and complete it.

1) Current Income & Assets – Get a hold of all your financial records for the current year. The lender will most likely want to see copies of these documents. Gather up your pay stubs, 1099’s, previous year W-2’s, bank statements, investment statements, and any other sources that show a proof of income and the assets you own.

2) Business Income (if applicable) – Be ready to show your tax returns … READ MORE

3 Smart Loan Options For Your Next Home Purchase or Refinance

If you are lucky enough to have a large sum of cash set aside to buy your next real estate property outright, then congratulations! But for the rest of us, we’ll need to finance our next home purchase with a mortgage or some other type of creative financing.

Then be able to pay it all back over a 1, 5, 10 or a 30 year period.

Shopping around and applying for financing that has good terms can be a real pain. Below we’re going to review the top 3 financing options that exist for residential real estate (i.e., condo, townhome, house, 2-4 unit multiplex.)

If you have not already, review my other guide regarding: How To Get Qualified and Approved For A New Mortgage Home Loan

Most of the below options can you assist you in

Let’s Begin!

Downfall of Putting Less Than 20% Down

Any down payment that is lower than 20% will require Private Mortgage Insurance (PMI), which means you’ll have a higher monthly payment. Here’s more information on what exactly PMI is: What Is Private Mortgage Insurance?

There might be a way to use a second mortgage to finance part of the down payment eliminating … READ MORE