There are four key areas to focus on to get pre approved for a home loan. Your best strategy is to start several months ahead of when you'd like to buy a home. Getting pre approved is great, but being highly qualified means better loan terms and interest rates. This can have a dramatic effect on your finances over time.
How to Get a Home Loan
Mortgage lenders are going to look at a lot of things, including your debt-to-income ratio. I can tell you, as a Realtor working with clients and facilitating mortgage approvals there's a whole lot more to it.
You can have the down payment, long time at your job and maybe you don't carry a lot of debt. That doesn't mean you can get approved for a home loan. Even if you do, it doesn't mean you'll get the best terms either.
How to Get Pre Approved for a Mortgage
If you're serious about looking into how to get pre approved for a home loan, check out this page on getting a home loan:
4 Great Tips for Getting Pre Approved for Mortgage
I would advise you to do some research on what type of home loans will best suit your purpose too.
There are many different home loan types. Some save you money upfront, others save you more money over the mortgage term. Some are a balance of savings now and later. By the way, if you choose a great real estate agent, they can possibly get your closing costs covered.
One of the four tips for getting a home loan I will share with you is for after pre approval. Please do not go hog wild because you got an accepted offer on a home. Underwriters pay close attention to your credit report not just for pre approval purposes, but right up to the day of closing.
Don't open a store credit card like Home Depot just to get a 10% discount on a new washer and dryer. New credit accounts will lower your score. I've seen a 10 point dip cost home buyers their home loan going through and being issues. Don't scratch that spending itch until after closing.
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