One way to have an edge in Denver's competitive home buying market is to get home loan pre-approval. How? We can help!
What is home loan pre-approval?
First, let us explain what pre-approval is. Basically, being pre-approved on a home loan means a lender (like On Tap Credit Union) has agreed to let you borrow up to a certain amount for a home. It also determines what interest rate you qualify for. This pre-approval letter is good for 60-90 days, which means you have that amount of time to make an offer on a home at those terms.
Why should I get pre-approved?
There are many reasons why it's a good idea to get home loan pre-approval. First, it helps narrow your home search, because you'll know exactly how much home you can afford. Second, it helps you stand out in a sea of homebuyers in this competitive market. It shows how serious you are about buying. It means a bank has already confirmed your information, and that you've already started the mortgage process. Finally, sellers will be more likely to accept an offer when you're pre-approved because you're already a step ahead in the process.
How do I get pre-approved for a home loan?
Luckily, getting pre-approved for a mortgage is easier than you might think! To begin, a lender will take a look at your financial health. This will determine what type of loan you qualify for and how much you can borrow. First, you'll need to provide a few pieces of information. For example, employment verification, pay stubs, a driver's license, and social security number are all needed. Next, the lender will work to better understand your finances using your credit history, debt-to-income ratio, and proof of assets. Finally, the lender will determine how much you qualify to borrow (a process called underwriting). Then you'll get a letter from them outlining all the details. After you have that letter, you can begin the home search!
Get your home loan pre-approval with On-Tap
In addition to walking you through the steps of pre-approval in more detail, we would be glad to help you get the process started! Contact us today to learn more.
Looking For More Great Tips?
Download Our Free Homebuyers Guide Here
