Knowing your home buying budget and the loan amount you will qualify for is an important part of the search process when you’re in the market for a new home. That’s where mortgage preapproval comes in. Getting preapproved for your mortgage can help give you confidence and show you are a serious buyer in a competitive housing market.
What is Mortgage Preapproval?
Getting preapproved for a mortgage is the best first step to take when you are serious about buying a home. The lender will do an informal review of your finances (credit, debt, assets, etc.) to determine the approximate amount that you can spend on your new property and if you would qualify for a loan.
What does it take to get preapproved?
Your lender will ask you to collect various financial information to understand your financial situation. You might need to provide W2s and tax returns, pay stubs, bank account information, your social security number, employment history, or a record of assets. These items help give an accurate determination of mortgage eligibility.
What should I do after I get preapproved?
After you’re preapproved, you can start looking for your new home! It can be a good idea to be mindful of your finances and employment when entering the home buying process. Lenders like to see stable income and credit, so make sure to wait to take a new job or make big purchases until after you find your dream home and your mortgage is completed.
What steps do I need to take to get preapproved for a mortgage?
Step1: Check your credit score and dispute any errors on your credit report.
Step 2: Gather your income, assets, and personal information.
Step 3: Complete the First Independent Bank home loan application at this link.
First Independent Bank offers residential lending throughout Central and Southern Minnesota. Our mortgage experts can give you the home loan solution you need for lake lot financing, a second home, or the dream home you’ve wanted to build. We give you quick answers and exceptional service when looking for a home loan. Our team is ready to help you find your next home; contact us today to get started!