What is mortgage preapproval when buying a house in Arizona?
As you search for a home, getting pre-approved for a mortgage can be an important step to take. It can be hard to shop for a home without knowing how much you can afford. Mortgage preapproval lets you shop smarter and make stronger offers. Let’s look at what it means to get a mortgage preapproval.
What is mortgage preapproval?
Mortgage preapproval is the process to determine how much money you can borrow to buy a house. To preapprove you, lenders will look at your finances – your income, assets and credit score to determine what loans you could be approved for, how much you can borrow and what your interest rate might be.
Why it is important to have mortgage preapproval?
A mortgage preapproval lets sellers know you have the borrowing power to back up an offer you make to buy their home. This could make your offer more competitive. In short, getting preapproved for a mortgage helps you shop for homes within your means and shows you’re a serious buyer.
When should you get preapproved for a mortgage?
The best time to get preapproved is just before you start shopping for homes. By verifying how much you are qualified for, preapproval helps you decide what you can afford.
How to get preapproved for A mortgage?
The preapproval process is essentially a mortgage application. This means your lender will want to take a comprehensive look at your finances.
What do you need to get a mortgage preapproval?
Before starting the preapproval process, you’ll want the necessary documentation to ensure the process goes smoothly. Here are a few items you should have on hand:
– W2 statements
– Pay stubs
– Proof of any additional income
– Proof of assets
– Bank statements
– Social Security number
Mortgage preapproval letter
Once you get preapproval, your lender will issue preapproval letter. The preapproval letter will show type of mortgage, terms of loan, how much you are preapproval for, the interest rate and estimated monthly payment. In Arizona, most lender will issue the Arizona Pre-Qualification Form.
How long does a mortgage preapproval last?
The time frame varies by lender, but commonly a mortgage preapproval is valid for 90 days. The preapproval letter may have an expiration date on it. If you’re still shopping for homes after the expiration date, you can ask the lender to renew the preapproval. You may need to provide updated information, such as bank statement and paystubs.
Conclusion
Getting preapproved for a mortgage is a crucial first step in the home-buying process. It gives you an idea of how much you can borrow, which will help narrow down your home search to houses in your price range. The pre-approval process could also uncover potential issues that would prevent you from getting a mortgage, so you can work them out before setting your heart on a house.
Swee Ng, Realtor and Phoenix East Valley resident specializing in win-win real estate transaction through great communication and fighting for his clients’ best interest. After all, this is more than real estates, this is about your life and your dreams.
If you are looking to buy or sell your home in Phoenix AZ and surrounding area, we hope you will consider us. Contact us today for complimentary consultation.
New Listings Homes for Sale Phoenix AZ
Search and view your dream home your way
Receive email alert as soon as a Phoenix property matching your criteria hits the market. Be one of the first to see new listings. Simply type in everything you want in a house and save your search here to be notified.
