Online Home Loans and Getting Pre Approved

A Buyers Market?

If you are just getting in the market for buying a home right now, you might be thinking that you have picked a good time. After all, housing prices are low and you have been told that it is a buyer’s market. However, that is only half of the story. Getting a home loan is harder than ever and getting a pre-approval could mean the difference between getting that dream home and watching it slip through your fingers. Sellers are not just taking the highest offer for their home; they want legitimate offers from buyers who can really qualify for the funding to buy their home. Many sellers have been, stood up, as it were more than once by buyers who, in the end, couldn’t get the financing. So before you go searching for that new home, get pre-approved with an online mortgage company, this will save you a lot of time and money in the end.

Going Through the Online Pre-Approval Process

Whenever you apply for a loan or for the pre-approval, you must show the lender all the reasons why they should be willing to lend you money. Lenders need to have as much information about your financial status as possible. They base the amount of money they will lend you and at what interest rate on the information you provide. Before you apply, get together all of your financials that verify your credit worthiness, i.e. savings, IRAs, retirement plans, stocks, assets, real estate holdings, and of course income. When applying online; you won’t need all of this information up front, the online lenders allow you estimate many of these figures in order to give you a quote. However, you will need them at some point. A good online broker will often solicit loans and quotes from several lenders. Lending Tree is a good example. Before you apply for a pre-approval on a mortgage, you need to make certain all your financials are in order. This is also the time to get a copy of your credit report and check it for inaccuracies.

An Online Mortgage Quote

Once you have applied online for a pre-approval of a mortgage, the quotes you get on the interest rate may or may not be what you actually get. They are giving you a ‘good faith’ estimate of what, given your implied credit worthiness, they can get you. There may be other factors that change it a little. The interest rate they quote you is based on current interest rates and will change until you have ‘locked’ it in. They can you usually lock the rate for you for 30 days. So, you need to find your home within that time frame. Now that you have pre-approval on a mortgage loan, finding the right home for you and convincing the seller that you are a legitimate and serious buyer is going to be much easier.