Not only does getting preapproval for a home loan help you narrow your home search, it speeds up the purchase process and can give you some real negotiation room when dealing with a seller. In this article, we'll talk about why getting preapproved for a mortgage is important and how you can do so.

Why Get Preapproval for a Home Loan?

Getting a preapproved loan tells you exactly what kind of home you can afford and your expected monthly costs. You can start house hunting without worrying about calculating finances. You'll know your maximum loan, maximum monthly payment, minimum down payment and that you have a virtual guarantee for a loan.

That preapproval letter can be real heavy artillery to motivate sellers, putting you in a better position to negotiate or win a bidding war.

How Do I Get Preapproved for my Home Loan?

When you apply for a preapproved mortgage, the process is the same as applying for a mortgage. You'll go through the application process with the lender, fill out your application, pay your credit report fee and submit your documentation.

When applying for preapproval, you'll need the following documents:

1. Check or cash to cover the application fee and credit report. If applicable, you may need to cover an origination fee or additional points up front.

2. Social Security numbers for all applicants.

3. List of all income sources.

4. List of all debts, credit cards, bank account numbers, loans, monthly payments and balances.

5. List with two years of employment history, including employer's name, address and contact information.

6. List of addresses for the last two years.

7. If you're self-employed, you'll need to bring in the last two year's income tax returns. Or, if you're newly employed (a recent graduate), you'll need to bring in copies of your W-2 forms.

8. The account numbers and balances for all your checking and savings accounts along with the branch addresses.

9. A clear explanation of any credit problems, and copies of bankruptcy papers, if any.

10. If applying for a VA loan, bring your Certificate of Eligibility.

11. List of all your stocks, bonds and investments, including current market values.

12. List of other assets and real estate.

13. Copy of any divorce or separation papers, along with child support and alimony documents - whether you're paying child support or receiving it.

When you look for a preapproved mortgage, the lender won't be able to actually inspect or appraise the property, so the preapproval will be contingent on both those processes.

More info on your stop foreclosure information search:

Get Free Foreclosure Advice and Free Refinance Quotes
Get your free on-line foreclosure refinance quote and free advice from foreclosure mitigation specialist in minutes. Compare real offers from top national subprime and hard money lenders... more...

What to Really Expect When Buying A Bank Owned Property
In recent years, most new buyers wanted to buy a new home from a homebuilder. Today, nearly every buyer I pre-qualify today says the same thing. ?I want to buy a bank-owned property.? In some counties around the country, foreclosures are at all-time highs. As a result, in today's market, the best ... more...

How To Invest In The Redemption Period Stage
There are four stages of foreclosure. they are pre foreclosure stage, the auction stage, the redemption period stage and the post foreclosure stage. This article will address the redemption. In this stage the property is redeemed the original owner. As in the previous two stages there are certain ... more...

Make a Ton of Cash in the Mortgage Foreclosure Market
One of the major problems most beginning mortgage foreclosure investors is trying to figure out the market value of a property they are interested in. For a lot of foreclosure investors you are looking for homeowners that want to walk away from that property and the problems that are associated ... more...

Appraisals
What exactly is a real estate appraisal? It is simply an opinion, or estimate, of the value of a particular property. A qualified person gives an evaluation of what that piece of real estate is worth. So who is this 'qualified person?? There are two trade organizations, The Appraisal Institute and ... more...