Mortgage Blog

Louisville Mortgage Pre-Approval 101

Louisville Mortgage Pre-Approval Document


If you’re looking at buying a home and haven’t yet been approved for a mortgage, it’s important that your read this post.


While a mortgage pre-approval is not required to make an offer on a home, it is needed if you want to be taken seriously by potential sellers.


In this blog post we are going to talk about pre-approvals on your Kentucky mortgage and why you really should be getting one if you plan on buying a home.


Beginning with the basics, a pre-approval on a mortgage is essentially a lender confirming that it has agreed to finance your home. Of course, they will finance it to a point based on a number of factors (which will be discussed later) and will outline the details in a pre-approval letter.


Now that we know what a pre-approval is, why should you be getting one?


Unless you are willing to pay for a home in pure cash or have an extremely stable job with great credit, home sellers may only take your offer seriously if you have been pre-approved for a loan. This is especially true if you have a history of bad credit or you truly aren’t set on an amount that you know you can afford.


Additionally, a pre-approval can come in extremely useful if you are purchasing in a popular market where multiple bids will be placed on a home. If you have letter from a lender stating that you have been previously approved for a mortgage, the seller knows they will not have to wait for you to be approved and can thus speed up the transaction immensely.


Now that we know what a pre-approval is and why you should get one, it’s time to look at how to get one.


Firstly, you need to find a lender that can help you achieve your purchasing goals. For example, do you want a lender who can help you close fast? Or, would you prefer to work with one who has a solid reputation and may hold some authority with the agent of the seller?


Once you find a lender you want to work with, you’ll need to provide several documents to help the lender make a decision on whether they should finance your purchase. Some of the documents required by a lender include:


  • Proof of income (pay stubs, tax returns, etc.)
  • Assets (bank statements)
  • Verification of employment (pay stubs)
  • Identification and social security number (driver’s license)

Once the lender has all of the required documents, you’ll need to give them your permission via signature to run a credit report.


Should everything check out and the lender feels you are a good candidate for a loan, you will be granted a mortgage pre-approval!


If you’re considering buying a home in the area and are looking into whether you should be getting apre-approval, contacting a trusted Louisville mortgage professional such as myself is a great way to get your questions answered and set you on the right path.


To learn more how I can help you achieve your financial goals, get in touch with me today!




Posted by Bruce Dittmer on October 18th, 2017 1:42 PM


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