Getting Pre-Approved for a Mortgage
When starting the home-buying process there are a few things you should do. One that should be on the top of every homebuyer’s list is pre-approval. However, the loan process might seem very daunting to many first-time homebuyers. Luckily, Jake Francom from First Colony Mortgage, our preferred lender, is here to help. Below, Jake will walk you through the pre-approval process and explain what you’ll need to get prequalified.
Why Mortgage Pre-Approval Matters
The first thing to do when searching for your new home is to get pre-qualified for a home loan. This is important to the home-buying process because it will help minimize the stress of finding a home by clearly outlining what’s in your budget. When you’re pre-approved there’s no need to stress. What’s even better is that the loan officers at First Colony Mortgage will help walk you through the entire pre-qualification process. It’s a very simple process that’s all a matter of filling out an application. This can either be done in person or online through our online application. This application details where your down payment is coming from, checks your credit profile, and outlines your financial health and history. It’s a fairly simple process that takes a short amount of time.
Why Get Pre-Qualified?
No matter what you do, make sure that qualifying for the loan happens first. Don’t start your home-buying journey by falling in love with a home only to find out that you can’t afford it. Start the process by finding what works for you. Set a budget. Know your budget. And don’t go over your budget. By prequalifying first, you know where to start and don’t get in over your head with excessive monthly payments.
Another reason that getting pre-qualified is so important is that it ultimately gives you buying power. Rather than guessing what fits inside your budget, you’ll know your limits ahead of time and then you can customize your home accordingly. From floor plans to the details, every decision will be that much easier after you’ve been pre-qualified for a home loan.
Along with buying power, pre-qualification is very important for first-time homebuyers. Since first-time buyers are new to the home-buying process, pre-qualification details the amount of home they can afford. It’s also important because they typically don’t have as much financial history as other buyers. This means that their credit score will play a big part in the pre-approval process. Luckily, even if they have a lower credit score than they’d like, our lenders will work with them to get it to where it needs to be.
Types of Home Loans
There are multiple types of loans available for homebuyers. These include:
- Conventional Loans: The most common loan for homebuyers, backed by lenders rather than government agencies and are set by the lender’s guidelines.
- VA Loans: This government-backed loan is available to veterans through the Department of Veteran Affairs.
- Rural Housing Loans: Available to low and moderate-income families, Rural Housing site loans are backed by the United States Department of Agriculture and Rural Development.
- FHA Loans: Backed by the Federal Housing Administration that requires borrowers to pay mortgage insurance premiums that protect the lender if they default.
What You’ll Need to Get Pre-Qualified
In order to get pre-qualified for a home loan, there are a few things you’ll need. These include:
- Two years worth of tax returns
- W2 forms
- One-month pay stubs
- Most recent bank statements
- Copy of driver’s license
- Credit score
All of these items can be given in person or attached during First Colony Mortgage’s online application process.
After all of these items are given, loan officers will then go over them. By examining every inch of your application, the lenders at First Colony Mortgage can then outfit you with the best home loan for you. When working with EDGEhomes and First Colony Mortgage, it’s about finding the perfect home with a loan that you can afford. With us, you’ll be sure to find the right home at the right price.
EDGEhomes and First Colony Mortgage
First Colony Mortgage is EDGEhomes’ preferred lender. When building a new home, the mortgage can be different than existing houses. First Colony Mortgage is ready to assist and guide you through financing your EDGEhome. As part of the pre-qualification process, we verify things like; employment, income, and assets to make sure you qualify before you go under contract. That way you won’t have any surprises when your home is ready.
Find out if you pre-qualify by filling out an application online with First Colony Mortgage.