Get Instant Preapproval For Your Dream Home With These Tips

Buying a home is one of the most exciting times in anyone’s life. However it can also be stressful and confusing if you don’t know where to start. One of the first steps is getting preapproved for a mortgage so you know exactly how much house you can afford.

I’ve been through the home buying process a few times now, and let me tell you – getting instant preapproval for your mortgage makes everything so much smoother. In this article, I’ll walk you through what instant preapproval is, why it’s important, and give you some tips for getting instant preapproval so you can start putting in offers right away.

What is Instant Preapproval?

Preapproval is when a lender reviews your finances – income, debts, assets, credit history – to determine the loan amount you qualify for. Instant preapproval means you get this preapproval letter right away, usually within a few minutes or hours after applying.

Having a preapproval letter in hand shows sellers you’re a serious buyer who is ready to move fast. In competitive markets, it gives your offer an edge over other buyers who don’t have financing lined up yet.

Why Instant Preapproval Matters

The faster you can get preapproved the faster you can start making offers. Here are some key benefits of instant preapproval

• See homes in your price range Instant preapproval gives you a solid home buying budget right off the bat No more wasting time looking at homes you can’t afford

• Strengthen your offer: Sellers often prefer buyers who are already preapproved. It shows you’re financially ready to move forward.

• Act quickly on listings: With preapproval done, you can put in an offer as soon as you find a home you love. No delays waiting for financing.

• Buy with confidence: Knowing you’re preapproved for a certain amount helps you shop and negotiate with certainty.

• Lock in lower rates: Interest rates fluctuate daily. Lock in your rate the day you’re approved to potentially save thousands over the loan’s term.

Bottom line – instant preapproval gives you a major competitive edge as a home buyer.

Tips for Getting Instant Preapproval

If you want to get instant preapproval, you need to put in a bit of work upfront. Here are my tips for ensuring a fast preapproval process:

1. Prep your financial documents

Lenders need to verify your financial information like income, assets, and debts. Have the following handy before applying:

• Tax returns for last 2 years
• W-2s for last 2 years
• Paystubs covering last 30 days
• Last 2 months bank statements
• Credit report
• Debt information like car loans or student loans

2. Boost your credit score

Your credit score is key to getting approved and securing the best mortgage rate. Here are some tips to improve your score:

• Pay down debts and credit card balances
• Dispute any errors on your report
• Don’t open new credit cards or loans
• Make payments on time

3. Shop lenders for the fastest preapproval

All lenders have different preapproval processes and timelines. Ask friends for recommendations of lenders they had a good experience with.

I had luck getting same day preapproval using an online lender like Rocket Mortgage. Their automated system gave me an instant initial approval.

4. Provide your info upfront

The more information you can provide upfront – like bank statements, tax docs, etc. – the faster underwriters can verify everything and issue your preapproval letter.

5. Communicate with your lender

Your loan officer is your guide through the preapproval and lending process. Make sure you’re responding to their requests promptly to avoid delays. Ask questions if you’re unsure about anything.

6. Get pre-underwritten for an even faster preapproval

Some lenders offer pre-underwriting before you even apply. This review by an underwriter prior to your application can help accelerate the formal preapproval process.

7. Have your down payment ready

You’ll need funds for a down payment and closing costs to finalize the loan. Show lenders you have these funds available when applying for an even faster preapproval experience.

My Experience Getting Instantly Preapproved

When I was house hunting last year, I wanted to be ready to make an offer the minute I found the perfect home. Here’s how I got instant preapproval:

1. I spent a month organizing all my financial paperwork. I knew lenders would need access to documents like my W-2s, pay stubs, tax returns and bank statements.

2. I boosted my credit score. I paid down some credit card balances to lower my debt-to-income ratio and increase my score.

3. I compared lenders to find one that offered fast online preapprovals. I ultimately chose Rocket Mortgage because they have an easy online application and offer approvals in as little as 8 minutes.

4. I provided all requested documents upfront. Rather than waiting for the lender to ask, I submitted everything from my credit report to my tax returns when I applied.

5. The lender pre-underwrote my application. This upfront review by an underwriter helped accelerate the final approval once I clicked submit.

6. I received preapproval the same day as applying. Within hours, I had a preapproval letter in hand with my qualified loan amounts, projected rates, and more.

Thanks to getting instant preapproval, I was able to make an offer on a home I loved just two days after touring it. The sellers saw I was qualified to buy immediately, which gave me a competitive advantage over other buyers.

Bottom Line

Instant preapproval can be a game changer when navigating today’s lightning-fast housing market. Following the steps above will help you get a same-day decision from lenders, so you’re ready to buy when the right home hits the market.

With your finances preapproved upfront, you can shop and bid with total confidence. Just stay in close contact with your loan officer throughout the process – and be sure to celebrate when you get the keys to your dream home!