SAN DIEGO, Jan. 26, 2014 /PRNewswire-iReach/ -- LoanLove.com is a borrower advice website that provides detailed insights into the mortgage industry in a fun and entertaining way. The team at LoanLove.com is devoted to help empower both first time and experienced homeowners with valuable resources, first-class knowledge and connections to top-rated industry professionals and has the mission of helping consumers and borrowers to obtain the latest information on mortgage lending trends, the real estate market and the U.S. financial landscape in order to help them obtain a home loan that they will love. Recently, Loan Love featured a helpful home loan pre approval process guide to help first time home buyers navigate this important step to becoming a home owner.
The article says, "One of the most common mistakes first-time home buyers can make when shopping for a house is to enter into the process without an understanding of how much home they can afford. Seeking pre-approval not only keeps you from wasting time looking at homes outside your price range, but can keep you from the disappointment of finding a home you truly want, only to find you can't afford it. Instead, you can limit your search to homes and neighborhoods within your means. In addition, once you are ready to put in an offer on a home, sellers will take you more seriously and often give your offer priority over similar terms without pre approval."
Loan Love goes on to explain that, "Unlike pre-qualifying, which simply relies on your best estimates about your financial situation, the more involved process of preapproval requires you to provide the prospective lender with documents that will be used to verify your financial and employment situation. These documents are required of both you and your co-borrower, if applicable. Ensuring you have these documents available at the start can help to speed up the preapproval process."
Another of the tips for home loan pre approval success that the article gives is for borrowers to carefully review their credit reports and correct any errors that they find before applying. Loan Love explains that during the pre approval process, the loan officer will take a look at this credit report and any negatives such as late payments, charge offs and reckless use of credit will be taken into account when considering the borrower's ability to pay back the loan. The article warns, "A surprising number of people have errors on their credit report, however, so it pays to get a copy of your credit report (and that of your co-borrower, if applicable) and ensure all the information is accurate before speaking with a lender. Each of the three big credit bureaus—TransUnion, Experian and Equifax—have information available on their websites explaining how to correct a mistake or dispute information in a report generated by them."
Lastly, the article recommends that borrowers work on improving their debt-to-income ratio (DTI). It says that while most people will not be able to do much about increasing their income, there are many ways to decrease debt. Paying down credit cards and other high interest loans before applying for pre approval are ways that borrowers can make their DTI look better and have a better chance of qualifying for the loan that they desire.
For more information and tips on how to ease the home loan pre approval process, please click here to read the full article on LoanLove.com.
Media Contact: Kevin Blue, LoanLove.com, 949-292-8401, firstname.lastname@example.org
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