HOME BUYER'S GUIDE

( Getting Approved )

A Mortgage Approval Shows What You Can Afford

It can be tempting to search for a new home by browsing listings and scoping out potential neighborhoods. But before you fall in love with a house, you should get approved first. A mortgage approval will help you estimate your monthly payment and understand what you can afford.  

What's approval?

An approval is a lender deciding that you're a good candidate for a mortgage based on the financial information you provide. In the approval, you usually get an estimate of your loan amount, interest rate, and what your monthly payment could be. This process can vary from lender to lender, and some lenders will call this a "preapproval" or a "prequalification."

Why Is It Important To Get Approved?

There are a few benefits to getting approved first:

You and your real estate agent will know how much you can spend, so you don't waste time looking at houses out of your price range.

Because the seller will know that a lender has already checked your finances, you'll be in the ideal position to make a good offer on a home.

You're less likely to run into surprises after your offer has been accepted, which could cause the loan to close more slowly.

Keep in mind that securing mortgage approval is only the first step. After you've found a home and made an offer, it must pass inspections and be evaluated by a third party. If your financial status changes, your approved amount may vary as well.

What Do Lenders Look At?
When determining how much you may borrow, mortgage lenders normally consider three factors: your assets, income, and credit. 
         
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The Procedure for Obtaining Approval

Each mortgage lender has its own set of guidelines for obtaining approval. TAG Lending Group has two stages of approval.

Prequalified Approval

TAG Mortgage is the most convenient way to obtain a Prequalified Approval. After you've created an account, you'll be able to do the following:

  • Please respond to a few questions regarding your earnings and assets.
  • Permit us to obtain a copy of your credit report.

If you're approved, you can print or download a Prequalified Approval Letter to give to your real estate agent so you can start looking for a home.

Verified Approval

You can enhance your negotiation position with Verified Approval before making an offer. Verifying your finances will help you make a stronger offer by demonstrating to the seller that you are financially capable of purchasing the property. Within 24 hours, a Home Loan Expert will check your income and assets, and you'll receive a Verified Approval Letter with the loan amount you've been authorized for.

How long does a letter of approval last?

Approval letters usually expire after 90 days, but this can vary depending on the loan type. You should renew your approval before placing an offer on a house if you haven't made an offer within 90 days of receiving an approval letter.

How to Choose Your Mortgage Company

Make sure you ask the following questions to receive the mortgage that's best for you:

  • How much do your rates and fees cost?
  • How long does it take you to close a home purchase loan on average?
  • What percentage of your clients are satisfied?
  • Will you continue to service my loan after we close, or will you sell it to someone else?
  • What are your hours of operation if I have any questions or need to contact you?
  • Is this something we can do online, or will I need a fax machine and stamps?