Buying your first, or next home, is a life-long dream for many Americans, and thanks to the River City Seal of Approval, that dream just became a whole lot easier.
Getting mortgage pre-approval is one of the best things you can do to simplify the homebuying process.
Mortgage pre-approval gives you more confidence as a homebuyer and lets you know how much you can realistically afford to spend and what to expect as a monthly mortgage payment.
But to ensure you put yourself in the best possible home buying position, it’s worth looking at what exactly is involved in the mortgage pre-approval process before you start looking at homes and how a River City Seal Approval can help.
What Is Mortgage Pre-Approval?
Mortgage pre-approval is confirmation from a lender, like River City Mortgage, stating that you qualify for a loan for a certain amount of money, and at a specific interest rate.
This letter confirms to any sellers that you really can afford to buy the home you’re interested in.
Mortgage pre-approval doesn’t cost anything, there’s no obligation to stick with the company providing the mortgage pre-approval, and you can apply online in a matter of minutes.
Apply For Your Mortgage Pre-Approval As Soon As You Decide To Buy A Home
Most Americans think the first step in the home buying process is contacting a real estate agent and looking at properties, but the reality is a little different.
The first step you should take after deciding to purchase a home is to apply for mortgage pre-approval, especially if you are looking in a competitive real estate market. Many sellers won’t accept an offer without mortgage pre-approval.
Mortgage pre-approval allows you to move quickly when you find your dream home.
Contact A Licensed Regional Mortgage Lender
When you reach out to a licensed loan officer who works in your area, like the pre-approval mortgage specialists at River City Mortgage, they’ll walk you through the application process.
Once your pre-approval is finalized, you’ll receive a pre-approval letter telling you how much you are qualified to borrow.
Gather Your Supporting Documents
While the documents you need for your mortgage pre-approval can vary depending on your situation — no two mortgage applications are exactly alike — there are general documentation guidelines that apply to most mortgage applications.
Required documents will include:
- W-2 forms, pay stubs or other documents that verify your income
- Income tax returns for the most recent income tax reporting year, plus the year before that
- Bank account and investment statements showing your current account balances
- Identification such as a driver’s license, passport, or other government-issued ID;
- If you have current, outstanding debt such as a student loan, gather documents that show your account’s current balance and monthly payments.
Having these documents readily available can speed up your mortgage pre-approval and home buying process.
Carefully Monitor Your Current Financial Situation
Mortgage pre-approval depends on several factors, including:
- Your credit history and credit score (you can get a free copy of your credit report from the major credit reporting agencies TransUnion, Equifax, and Experian)
- Current debt
- Current income
- How much money you have saved for a down payment
- Your current employment status
Once you apply for mortgage pre-approval, it’s important not to make any major life changes.
Avoid taking out a new loan or running up debt on any credit cards you have.
Your debt-to-income ratio, the amount of debt you have compared to how much money you make, is a crucial factor in your mortgage application being approved, so it’s a good idea not to change your financial situation.
It’s also good to avoid changing employers after receiving your mortgage pre-approval. You can find out more about what you should and shouldn’t do after receiving mortgage pre-approval here.
Depending on who is providing your mortgage pre-approval, it can be valid for anywhere between 30 to 90 days. That means you can look at homes during that period without having to reapply.
If it takes you longer than that to find your dream home, don’t worry. We’re happy to renew your mortgage pre-approval, and because you provided the documentation previously, renewing your pre-approval will take less time and needs less paperwork.
However, if you significantly change your financial situation, including money coming in or taking out a new loan, you will need additional supporting documents.
Put Your Offer at the Top of the List With River City’s Seal of Approval
Other mortgage applications tell sellers you’re serious about buying and that you’ll likely be approved when they actually apply for the mortgage.
But if everyone who wants a house is getting a mortgage pre-approval, how do you make your application stand apart and demonstrate to the seller that you’re the best choice?
When you apply for your mortgage with River City Mortgage, we show sellers that you’re the best buyer they can choose.
Our mortgage pre-approval isn’t just completed by a loan officer, like other lenders, we escalate your application and information to our most senior-level mortgage specialists.
They put their combined years of experience and mortgage expertise to work for you to get the best mortgage possible.
Once they’ve reviewed and approved your application, you are awarded the River City Mortgage Seal of Approval. This sets you apart from every other mortgage pre-approval the seller will receive.
The president of River City Mortgage signs your Seal of Approval, personally ensuring that you are a good candidate for a mortgage application and recommended potential buyer.
Other mortgage companies don’t offer that level of review or credibility and that can leave sellers at risk.
Without the River City Mortgage Seal of Approval, sellers don’t have the assurance the application has been completed as accurately as yours is, or that the buyer is as good a mortgage candidate as you are.
If you plan on buying a home in the future, have questions about the home buying or mortgage pre-approval process, or are curious about how much of a mortgage you qualify for, reach out to the licensed loan officers at River City Mortgage.
Because we love helping first-time homebuyers, we can’t wait to go over all of the options available to you.
It’s our mission to help you find the right mortgage product for you and help you get into your dream home.
Let the River City Mortgage Seal of Approval help you secure your first home faster than anyone else.
