As a home buyer, one of the most important steps in the process is getting pre-approved for a loan. This will give you an idea of how much you can afford to spend on a home and also help to narrow down your search. 

Here are some tips on how to get pre-approved for a home loan:

1. Talk to multiple lenders.

Its important to compare rates and terms from different lenders before you decide on a loan. Be sure to ask about any fees associated with the loan as well.

2. Get your financial documents in order.

When you apply for a loan, the lender will need to see proof of income, assets, and debts. Having all of these documents ready in advance will speed up the process.

3. Know your credit score.

Your credit score is one of the factors that will determine whether or not you are approved for a loan, so its important to know what your score is before you apply. You can get a free copy of your credit report from each of the three major credit bureaus once per year at AnnualCreditReport.com.

4. Understand the type of loan you’re looking for.

There are many different types of loans available, so its important to choose the one that best suits your needs. For example, if you have good credit, you may be able to qualify for a conventional loan with a lower interest rate than someone with less-than-perfect credit who is applying for an FHA loan.

5. Have realistic expectations.

Just because you are pre-approved for a certain amount doesnt mean that you have to spend that much on a house. Its still important to stay within your budget when shopping for a home so that you dont end up with more debt than you can handle. Asking prices for homes continue to skyrocket while wages stay relatively stagnant; this has created quite the housing crisis across America.

In order increase the chances of being able purchase their dream home many hopeful buyers are now wondering how they can get pre approved for mortgages.

Five key tips on what buyers need do in order increase their chances being approved for mortgage financing

Tip 1: Get Organized

The first thing any buyer should before applying mortgage is get organized This means having all relevant financial documents such W2 statements tax returns pay stubs asset statements etc. Mortgage lenders will use information gleaned from these documents help determine if applicant qualifies financing

Tip 2: Improve Your Credit Score

Another factor which will influence whether not applicant gets approved mortgage financing their credit score Because this number gives potential creditors idea how likely person is repay debt time it essential understand what yours There are few ways check what kind shape credit including pulling report annualcreditreport

Tip 3: Consider Different Loan Types and Terms

Not every buyer is the same which why there many types loans available to suit their needs. Some common loan options include fixed rate,  adjustable mortgages (ARMs),  FHA 203k, and others.  Each has its own set terms and conditions which might better suited for  specific buyers based factors like employment history,  monthly income, home size, desired down payment, and length time they plan stay property.

Tip 4: Comparison Shop Lenders

Once again not all mortgage professionals are created equal.  Often times,  people assume since banks offer similar products and services, they must also charge similar rates.  However this couldnt be further from the truth.  It pays shop around compare interest rates, fees, closing costs, and length of time to close the loan.  Some banks even go so far as to provide incentives to customers to open accounts with them (like cash back rewards, points for frequent flyer miles).

Tip 5: Know Your Budget and Comfort Level

Just because person gets pre approved for a particular amount doesn’t necessarily mean they areobligated spend entire amount purchasing home. It is advisable to create a budget that helps stick to a  spending limit during the home search process.  Remember, when qualifying for mortgage it doesn’t make sense financially to overextend your finances and become ‘house poor’.