7 Little-Known Tips to Get Pre-Approved for a Mortgage

By Rupeezo | 27th, Feb, 2023

Are you having a hard time getting mortgage loan pre-approval? Well, many factors can lead to the approval or rejection of your mortgage pre-approval application.

But fret not! Learning some tips can save you the trouble and time invested in the process of getting pre-approved for a mortgage.

If you wish to purchase your dream home, then consider getting online mortgage pre-approval. Getting pre-approved will increase the chances of obtaining the required loan amount to finance your new home.

This way you can determine the amount or home you can afford, and start searching for the options accordingly.

To swiftly move through the mortgage pre-approval process, here are some tips to keep in mind.

1. Gauge Your Credit Capacity

First, know your eligibility to get online mortgage pre-approval. Various banks and financial institutions have different criteria for eligibility, so it's essential to understand the different eligibility criteria set by different lenders. To assess your eligibility for a mortgage, lenders generally consider the following-

Your Income,
Credit Score,
Age,
Employment History.

Therefore, you should ensure that you have a steady income and a great credit score of at least 750 before you apply to get a mortgage loan pre-approval.

2. Probe into Different Lenders

Once you've determined your eligibility, the next step is to research different lenders. It's essential to search around to find a lender that offers the best mortgage deal and offers terms and conditions that fits your needs. You can also take the aid of a mortgage broker to know about different lenders and select the one that best suits your requirements for mortgage pre-approval. You can also try visiting different websites of banks or lenders. Searching and inspecting things online is more convenient than physically visiting lenders

3. Gather Your Credentials

It’s important to arrange all your documents before you approach a lender to apply for pre-approval. A lender may ask for different documents in the process of getting pre-approved for a mortgage, however, the most common documents required are-

Proof of income,
Tax Returns,
Bank Statements,
PAN card,
or an Aadhaar card.

It's essential to have all these documents ready before you apply for a mortgage. Setting these documents in order will make for a speedy mortgage pre-approval process and will increase the chances of getting pre-approved for a mortgage as well.

4. Apply for Pre-Approval

After gathering all the required documents, the next step is to apply for online mortgage pre-approval. You can easily apply for a mortgage loan online and do not have to physically visit the lender. Nowadays, the process can be effectively executed with the assistance of online lenders. The typical pre-approval process involves filling out an application form, providing the necessary documents, and paying a processing fee or other charges. The lender will review of your application, see if you are eligible for the loan, review your documents, and based on other factors, will move ahead with the process. If you conform to the lender’s requirement for pre-approval of a mortgage, they will provide you with a pre-approved sanction letter.

5. Select the Mortgage Type

After receiving pre-approval for a mortgage, you may need to pick the type of mortgage that conforms to your borrowing needs. There are different types of mortgages, such as:

Simple Mortgage
English Mortgage
Usufructuary Mortgage
Mortgage by title deed deposit
Anomalous Mortgage
Mortgage by conditional sale

The borrowing amount and other terms of the mortgage loan that you get is determined by the type of mortgage loan you pick. So consider the type of mortgage loan that your lender provides, and then select the loan that works for your requirements.

6. Negotiate With the Lender

Your work does not stop when you find the right lender that fits your mortgage needs. Also, the mortgage pre-approval does not mean that you will get the mortgage you want, it just an initial step that gets closer to purchasing the mortgage. However, if you want to assure that you get the best rates for the mortgage loan, then negotiating with the lender can help. So, get familiar with the terms and conditions and then try bargain with the lender. Skimming through the fine print, you can find some things to negotiate.

The Final Step

The last step is to decide on your mortgage, once you get accustomed with all the terms and condition set by the lender. It also involves the payment of fees such as stamp duty or processing fee. There may be more formalities depending on the lender or financial institution through which you have applied for the loan. After assuring everything, the loan disbursal will take place where the borrowing amount will be sent to the account of the loan applicant, which may further transfer the amount to the seller or whomsoever concerned. Finally, you can have the ownership of your new home.

To get Instant Pre-Approved Loan, look here.

Frequently Asked Questions

1. How Long Will It Take to Get a Mortgage Loan Pre-approval?

The application process for the pre-approval of a mortgage can take a lot of time, but if you have everything in line, you can get your pre-approval within 3-10 business days. The time range varied and extends to 3-4 weeks, it depends on the lender’s discretion.

2. How Long Before Should I Get Pre-approved for a Mortgage?

It’s important to get your pre-approval in advance before you purchase the mortgage or home. You should start the pre-approval process at least one year before you set to make the purchase. The process can take a lot of time with all the enquiries, so it is important to begin early. Once pre-approved, the offers usually last up to 3 months.

3. Can Online Mortgage Pre-approval Impact Your Credit Score?

If your payment history is clean and you are no longer applying for credits, then there may not be any negative effects. Although inquiries are conducted if you have a good repayment history, you don’t have to worry.

4. How Long Does the Mortgage Loan Pre-approval Letter Last?

The pre-approved offer for a mortgage is only valid for a small period of around 1-3 months. The time period may vary from lender to lender.

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