3 Requirements to Get a Mortgage Preapproval

A mortgage pre-approval can give you the confidence and backup you need during a real estate process. Learn how you can get a mortgage pre-approval with this post that Land Title in Minnesota has put together for you.

To many people, being a homeowner is the ultimate dream. Getting the sense of security and peace of mind that can come with having a roof over your and your family's head, is a milestone that many want to reach. Still, as you may be aware, making that dream a reality is a struggle. Not only is the real estate business tricky and cut-throat, but given the financial commitment a real estate investment entails, it can be hard to make it through the home buying process. Luckily, there are loans, known as mortgages, that are destined for real estate investments. They can give you the financial back up you need to ease your journey towards homeownership. If you are thinking you'll need a mortgage for your investment, it's a good idea to get a mortgage pre-approval. This, for a couple of reasons. On the one hand, being pre-approved gives you the confidence to go out and fulfill your dreams. On the other, it helps the seller see that you have a real offer and mean real business. If you'd like to get a mortgage preapproval, however, there are things that you need to look after and certain requirements that you need to meet. While it's important that you go to your loan officer for a specific list of what you need, the post below will share a general idea of what you need for a mortgage pre-approval, so you can start getting ready to begin the process.

If you're getting ready to begin a real estate investment process, call Land Title in Minnesota at 651-697-1900 to ensure you have the title services you require to have a safe and successful transaction.

How to Get a Mortgage Pre-Approval

Get Your Financial Situation in Order

First of all, you need to get your financial situation in order. It should go without saying that a real estate investment requires a huge financial commitment (which is probably why you need a mortgage). Still, even if you get a loan, you need to be able to pay it back. Moreover, you may want to have enough money to take care of the downpayment from your own pocket. For these reasons, you need to take care of your finances. This includes paying all of your current debt, balancing your credit score, and making sure you have a strong financial situation. Of course, you also need to have some money saved up. The better your finances, the more trustworthy you'll seem in the eyes of the loan officer.

Call Land Title in Minnesota at 651-697-1900 to learn more about how the right title services can help you keep your investment safe during your complex real estate transactions.

Provide the Required Documents

Next up, you will need to provide certain documents so that the lender can verify your personal information, financial stability, and your ability to pay off your debt. Keep in mind that the documents you have to provide may vary from one mortgage company to the next, so look into that before you walk through the door. Regardless, here's a general list of what you may need:

• Social Security Number
• An official ID
• Bank statements
• Proof of income
• Proof of employment
• A list of assets/investments
• A list of expenses

Call Land Title in Minnesota at 651-697-1900 to guarantee that you get a professional title search and title insurance that will provide the peace of mind you need to make a smart decision.

Get Insurance for the Real Estate Investment

Finally, you may have to invest in insurance to get the financial backup you need for your real estate process. This will depend on the mortgage company you go to, but they may ask that you get title and homeowner's insurance. It's in the company's and your best interest to protect the investment against certain issues that could arise, which is why insurance is important. Title insurance can keep the investment protected against certain irregularities that could be present in the property's records, while homeowner's insurance can cover certain damages due to natural disasters, vandalism, maintenance, and more.

Call Land Title in Minnesota at 651-697-1900 if you need a professional, experienced and dedicated company that can provide the title services you require (like a professional title search and title insurance) to ensure you have a safer and more successful real estate process.