August 4, 2014

Having a Pre-Approval Letter when Buying a Home in Illinois

Buying a home in Illinois can be a very stressful process, but there are a few steps you can take to make the process as easy on yourself as possible. One of the most important things you can do is to get a pre-approval letter from a lender.

By having a pre-approval letter from a lender before you start the process of looking for a home, you will know exactly what you can afford. You will be able to eliminate anything that is out of your price range, and you will be able to focus your time and energy on looking at properties which you can afford. This will save you lots of time, and possibly heartache, down the road. As a home buyer, nothing is much worse than falling in love with a house that you cannot afford.

When it does come time for you to make an offer, having a pre-approval letter will make you a much stronger applicant than someone without a pre-approval letter. Being able to show a seller that you already have a lender who is willing to give you a loan will make you a much more attractive applicant.

You also want to be sure that the lender has pre-approved you and not just pre-qualified you. A pre-qualification letter doesn’t mean a whole lot because the lender has not verified anything; a pre-approval letter is only given after the lender has verified your credit, assets and income. To do this, you will need to give permission to your lender to pull your credit report and provide documentation such as bank statements and W2s.

To get pre-approved for a home mortgage, here are three other things that will be required by most lenders:

  • Credit score above 620
  • Minimum loan amount of $60,000
  • A down payment of 3-5%

Buying a home can be stressful enough as it is, make things as easy on yourself as possible. If you are looking to buy a home in Illinois, contact United Home Loans below or at 708-531-8388.

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