Are you thinking of buying a home in Oregon? If yes, then you are also thinking about the mortgage loan. Buying a home in Oregon the most beautiful cities of the USA is an exceptional feeling, but getting a home loan for that is one of the most daunting tasks. It is more frustrating if your credit score is poor. In this blog, we are not going to tell you how to get pre-approved but also how to get a loan from the reputed lender as well. So, let’s get started.
What is a pre-approved loan?
A pre-approved loan is also known as pre-qualification process which means “ your already passed loan approval process and guaranteed to receive a loan from the lender”. One of the significant reasons to opt for the pre-approval loan process is that when you get the pre-approved loan you can share this approval with your seller and he give your priority over other buyers because a pre-approved letter makes you an ideal buyer in the eyes of the seller and that could help you to get best Oregon mortgage rates.
You must understand the sole objective behind the pre-approval of home is to estimate the ability of the buyer how much he/she can afford. You can shortlist the property and plan your budget based on this amount.
How to get the pre-approval of a loan?
If you are thinking to apply for a pre-approval of a loan, then be prepared to provide details about employment, income, debt, and financial accounts to get pre-approved for a mortgage.
Step1: Get your free credit score: Know where you stand before reaching to a lender. A credit score must be higher than 650 and, a higher credit score will qualify you for better rates. Generally, a credit score of 750 or above will enable most borrowers to qualify for the best mortgage rates. If your credit score is lower than 650, then you will not get the pre-approval for a loan. Because most of the mortgage lender’s eligibility criteria to get a pre-approval of investment is a good credit score. If you want to increase the credit score, then you should pay all your pending bills and clear your debts.
Step2: Calculate your debt to income ratio: Your debt to income ratio is the percentage of gross monthly income that goes towards debts payment, including credit card payments, student loans and car loans. If you have already a loan then it is important to clear the EMI of that loan first and then opt for another loan. Leaders prefer the borrowers whose debt to income ratio is 36% or below.
Gather your financial details and employment: Most of the lenders ask you to share your financial details like credit cards, income, and employment details. He will cross-check all the details, and if everything is fine, then he will proceed with your pre-approval application.
Contact more than one lender: You may find that one lender makes it easy to apply for a pre-approval online. Contacting more than one lender can help you find the right loan that perfectly matches your requirements and budget. You can get the details of the mortgage lender by reading their reviews from various social media platforms.
We hope this comprehensive guide on the pre-approval loan helps you a lot. If you are looking for the renowned reputed mortgage lender in Oregon for the pre-approval home loan process, then feel free to contact us. Our pre approval process of a loan is straight word and requires less documentation.