Mortgage Pre-Approval In Indianapolis - What You Should Know

Mortgage Pre-Approval In Indianapolis - What You Should Know

Purchasing a home is an expensive affair and most people rely on a mortgage to help them buy a home. Before you even start your search for a home, it is important to seek mortgage pre-approval in Indianapolis. This simply means that the bank carries out an audit of your financial status and pre-approves a mortgage, giving you the payment terms and the amount approved.

Mortgage pre-approval is a very important part of real estate deals. It helps you plan for your Indianapolis home purchase knowing ahead of time that you will get financing from a bank.

There are certain things that a bank looks for during the pre-approval stage. These factors help the bank make an informed decision on the amount of money they will lend you.

The Process of Mortgage Pre-Approval

You are required to meet with the loans officer at your Indianapolis bank or financial institution to make a mortgage application. The bank acquires special permission to carry out a thorough credit check on you after you make an application so be prepared to sign some forms and bring in verifiable proof as required.

Here are some of the things the bank seeks to establish:

• Your employer’s name, length of employment and your current monthly salary
• Total household earnings per year
• Annual investment earnings and its interest rates
• Annual income received from other sources like tips and commissions
• Income earned during the last two years for businessmen
• A record of total property owned, for example, jewelry, cars, furniture, bank accounts, registered retirement savings plan and other investments
• Any child support received or paid out for the last two years
• A list of all liabilities

With this information, the bank is able to establish your financial position and pre-approve your mortgage. After this, you can easily look for a Indianapolis house to purchase in full confidence that you have an approved mortgage in place.


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