Wednesday, April 15, 2009

Get Your Loan Pre-approved And Pre-qualified With These Simple Steps

One of the most important steps to home buying involves getting the right loan amount for your ideal  MN property. There are several ways you can get prequalified to purchase a home and preapproved for a home loan, and it's generally a good idea to check your credit report before approaching this step. A prospective lender will be reviewing your credit report and other financial details in great detail as you set the prequalification or preapproval process in motion, and you can obtain a free credit report from any of the three major credit bureaus to check it for errors.

Have your credit records immediately cleared if you notice any discrepancies in it and ensure that you keep intact all proof of communication with the credit institution. When all these have been settled, it's now easier to proceed with your homebuying experience; the following tips are important in the prequalification and preapproval of your loan:

1. Do a research on various mortgage program via the Internet. There are many online resources where you can actually see the lists of current interest rates for various loan packages such as and An initial step would be to look at some options or better yet, submit your personal information for sample or preliminary review. In just a few days, a loan representative may communicate with you and guide you along the way.

2. Approach your area bank. Most people turn to a mortgage loan officer at their bank to obtain a prequalification letter or preapproval status in person. Ilyce Glink, author of '100 Questions Every First Time Home Buyer Should Ask' explains that this process can actually take longer than the online process. However, some people prefer the face-to-face communication and will be more comfortable going to the bank in order to get things started. However, you will be receiving the same type of service either way.

3. Dial the telephone. Another option you may try is transact your loan prequalification over the telephone, instead of online or bank methods. Some lenders offer this kind of service and all you have to do is ask the local bank for the number so you can give or submit your personal details through the phone.

4. Try a national lender. National lending companies such as Countrywide home loans and Bank of America also offer online services and over-the-phone prequalification and preapprovals, giving you more options for your future loan. Visit these lending companies' websites to learn more about current rates and send in your information to become prequalified for your loan.

5. Use an aggregator website. This is helpful especially when you need a website that has rates and services from different lending institutions yet requires you to send your info only once, or if you experience difficulty choosing between banks and financial institutions. You have the freedom to select from a number of packages once you have sent in your personal details.

Ultimately, homebuyers need to get prequalified and preapproved for a home loan first before the actual process is done. The abovementioned resources are helpful tools in finding the best deal for your mortgage and getting started.

About the Author: Alexandria P. Anderson is a Lake Minnetonka real estate agent that helps people to find and purchase Lake Minnetonka homes and properties for sale in the Twin Cities of Minnesota.