How to Get a Pre Approved Loan
- 1). Research lenders. Your lender should provide the specific type of loan you are seeking. For example, if you would like to be pre-approved for a mortgage with a guarantee from the Federal Housing Administration, research FHA-mortgage lenders. If you are looking for a bad-credit car loan, research lenders in this specialty.
- 2). Complete a loan application. Loan applications can be lengthy, and the information required varies by lender. However, there are industry standards for all types of loans. You will need to supply a Social Security Number or Taxpayer Identification Number for the lender to check your credit, for example.
- 3). Provide proof of income. You may verify your income by supplying your tax documents for the past two years. Alternately, you can provide proof of income from your employer, such as a paycheck record or signed statement. For a smaller loan, you may be able to supply a statement regarding your average bank account balance from your bank to provide proof of your ability to pay.
- 4). Wait for the underwriter to evaluate your loan. This can take several weeks. You may be asked to submit supplementary documents so that the underwriter can make sure you are qualified. For example, if you just started a new job, the underwriter may be concerned your salary is not stable. You may be asked to submit tax records going back five years to verify that your income has remained stable over time.
- 5). Receive your loan offer. The lender will not ask you to finalize any documents at this point. The final offer will be subject to the actual dollar amount you spend on your pending purchase. This document is simply informing you of how much the lender is willing to supply you and the general terms you can expect on your loan.
- 6). Shop for your purchase immediately. If anything changes in your financial situation, such as a change in job, your pre-approved loan may be invalidated. If you wait longer than 30 days to find your home, car or other purchase, you may need to go through the approval process all over again.
- 7). Contact your lender. Once you have found the asset you wish to purchase and negotiated a price with the seller, contact your lender immediately so that the lender can provide the financing to complete the sale. At this point, you will have to sign your financing agreement for the exact terms of your loan.
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