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Mortgage Loan Preapproval Basics

Mortgage Loan Preapproval Basics
If you’re buying a golf course home for sale in Arizona, you’ll probably need a mortgage – most people do. Part of that includes mortgage preapproval, which can help you land the home of your dreams.
But there are a few things you need to know about loan preapproval, including:

  • How long it takes to get preapproved for a mortgage
  • Whether mortgage preapprovals affect your credit score
  • Whether you can get multiple preapprovals for a mortgage
  • Whether you can be denied a loan even if you’ve been preapproved

Mortgage Loan Preapproval Basics

You need a preapproval letter from your lender for a few reasons, but primarily, you’ll be able to use it to determine your price range and, when you make an offer, you can include it – that way, the seller can be confident that you’ll be able to get financing if he or she accepts your offer.
Many people have other questions about loan preapproval, too, so here are the basics.

How Long Does It Take to Get Preapproved for a Mortgage?

The length of time it takes to get preapproved for a mortgage is mostly based on how quickly you can provide your lender with information. You’ll most likely need:

  • Your two most recent tax returns
  • Your last three pay stubs
  • 2 to 3 months of bank statements
  • W2s from this year and last year (at least)

Your lender may have other requirements, too, and the sooner you can provide the necessary documentation, the better. Generally, it takes between one and a few days to get mortgage preapproval.

Do Mortgage Preapprovals Affect Your Credit Score?

A mortgage preapproval will most likely affect your credit score. Lenders have to ask for your permission to check, which results in a “hard inquiry.” This type of inquiry dings your score – usually by a few points – but your FICO score will not reflect those inquires if they happened within the past 30 to 45 days. This allows you to rate-shop.

Can You Get Multiple Preapprovals for a Mortgage?

You can get as many preapprovals for mortgages as you’d like, but remember, each lender will do a “hard inquiry” into your credit. While your FICO score won’t reflect these inquiries for 30 to 45 days, it will after that period of time has elapsed.

Can You Be Denied a Loan, Even if You’ve Been Preapproved?

A lender can deny you a loan, even if it has already preapproved you to borrow. The most common reasons lenders deny people after preapproval include:

  • Loss of a job or change in employment
  • New negative items on your credit report
  • New debts on your credit report
  • Lender-changed loan requirements or guidelines
  • Appraisal issues (such as when the home you want to buy appraises for less than the selling price)

Do You Need to Talk to a Realtor® About Buying a Golf Home in Scottsdale?

If you’re thinking about buying a golf course home for sale in Scottsdale or the surrounding communities, we can help you. Call us at 480-405-4228 or get in touch with us online to talk about what you need. We’ll help you find it.
Don Matheson
Realtor | Founder
The Matheson Team – RE/MAX Fine Properties
21000 N. Pima Rd., #100, Scottsdale, AZ 85255
[email protected]
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