Once you’re ready to begin the process of buying a home, the first thing you will want to do is get pre-approved. A pre-approval is a letter from your lender that contains a definitive assessment of your purchasing power and outlines the amount you are qualified to borrow along with other important information. It will also give you a better idea of the interest rate you qualify for. A pre-approval communicates to sellers that you are prepared and approved to begin the home financing journey and could give you a leg up against other potential buyers without one.
Step 1: The Online Application
To get started, you’ll complete the online mortgage application and upload the required financial documents. Our Warp Speed Mortgage automation will review your information and provided documents. If there are any irregularities detected by our smart bots, like missing information or documentation, your application will be reviewed manually and someone may reach out to you to gather additional information.
The Warp Speed smart bots will review your application and determine your pre-approval based on the following factors:
- credit score
- down payment amount
- debt-to-income ratio (how much you make vs. how much debt you have)
- likely stability and continuance of income
Step 2: The Pre-Approval Letter is Issued
Once your application is submitted and reviewed, and if there are no outstanding documents needed, your pre-approval letter will be issued and available for you to download that same day. Along with the letter, which states your qualification for your loan program and purchasing power, you can also expect to receive a breakdown of your:
- down payment
- closing costs
- cash to close
- monthly payment
- type of loan and how it works
With your pre-approval in hand, it will now act as your advocate when making an offer on a home. A strong pre-approval can set you apart from other buyers, especially those who only have a pre-qualification to go along with their offer. When you’re buying in a competitive seller’s market, your pre-approval shows that you’ve already begun the home financing process with your lender and will likely be able to complete the process quicker than other potential buyers.
Going through the pre-approval process doesn’t guarantee that you will be supplied with a pre-approval letter. If you’re having trouble getting pre-approved today, there are steps you can take to improve your chances of getting pre-approved later.
If you’re ready to get started on your home financing journey, start the process with Warp Speed Mortgage today!
