Before you start house-shopping, it’s a good idea to get loan preapproval.

But what is preapproval, and how do you get it?

What is Loan Preapproval?

A preapproval for a loan occurs when a lender looks at your financial situation and determines that you’re eligible to borrow a certain amount to buy a house.

It’s not an official loan approval, but it’s the lender’s way of saying that if nothing changes in your financial profile, you’ll most likely be approved for a mortgage loan.

How to Get Preapproval

Call several lenders and ask about their rates for people with your credit score. While lenders typically base their interest rates on what the market is currently doing, each will have its own terms – and some will be more favorable than others. Different lenders offer different loan packages, too, so it’s a good idea to shop around until you find some that work well for you.

Once you’ve settled on a lender, ask to apply for preapproval. You’ll have to provide financial documents, such as pay stubs and tax returns, and your lender will evaluate your financial profile (and look at your credit score) to make a determination.

Are You Buying a Home in Irvine?

Call us at 949-385-1684 or get in touch with us online to tell us what you want from your next home so we can help you find it.

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