If you’re buying a home for sale in Tampa Bay, you’ll probably want mortgage preapproval – but what is it, and why do you need it?
What is Mortgage Preapproval?
Mortgage preapproval is a process that involves your lender evaluating your financial circumstances and determining how much – if any – money it will lend you to buy a home.
Once you have been preapproved by a lender, you’re in the clear to start house-hunting. You’ll know exactly how much you can afford to spend on a home, and when you make an offer, the seller will be able to take it seriously because he or she knows that you’ll be able to secure financing.
How Does Preapproval Work?
Your mortgage lender will look closely at your credit scores and verify your income before granting you preapproval for a loan. You’ll have to provide financial documentation, such as:
- W2s from work
- Past years’ tax returns
- Bank statements
- Income statements from investments
- Proof of other income
How Long Does a Preapproval Last?
When a bank gives you a preapproval letter, it’s usually only valid for 60 to 90 days (the time varies by lender). It’s also only valid if your financial circumstances don’t change much (that means if you take out a car loan days before you apply for a mortgage loan based on an existing preapproval, you might not be eligible for the same terms and rates – or you might not be approved at all).
Are You Looking for Homes for Sale in Tampa’s Suburbs?
If you’re thinking about moving to Tampa, check out the links below to search for homes with just one click:
Call us at 727-584-8480 or 813-961-6000. If it’s easier, get in touch with us online. We’ll begin searching for your new home right away.