First Step to Buying a Home - Louisville, KY
Buying a home is the biggest investment most people will make in their lifetime. For a first time homebuyer, the homebuying experience can be overwhelming. There is an abundant amount of information to know when buying a house, which is why it is important to use a real estate agent. The first step to buying a home, however, is fairly simple. If you don't have the finances to pay cash for a house, then the first step will be to get pre-approval letter from a lender.
What is a pre-approval letter?
A preapproval letter is a document that a lender drafts up describing based on your credit score, income and assets, and debt to income ratio. The lender will verify the information you provide and pull your credit score. The letter states that they are willing to provide a loan up to a certain amount of money and states what type of loan you are applying for. A preapproval letter will prove to the seller that you are a qualified buyer. In a lot of cases, a preapproval letter is required to submit an offer on a house. In most cases, a pre-approval letter will be good for at least 30 days.
How do I get a pre-approval letter?
You can obtain a pre-approval letter from a mortgage company, bank, or credit union. It is important to choose a company that is experienced with home loans so that it makes the process easier. You will want a lender that knows a lot about the different types of loans and loan programs to make sure you get the best interest rate.