Question : Pre-qualifying for mortgage loans in order to shop around?
Is pre-qualifying for a mortgage loan the way to compare loans? I am a first time home buyer and want to understand the best way to shop for a loan. Then if I chose a loan and wanted to get pre-approved, how long does it take to get approved before I can put a bid on a house?
mortgage loans

Best answer:

Answer by rashiracer
You could do that, or just ask the current rates for someone with your credit score, income level, and debt-to-income ratio. They can’t guarantee that’s the rate you’ll get but it’s a start. Often what happens is you will pick a bank you trust and they will shop within their own programs for the best loan for your circumstances. When you are ready for pre-approval, this process can be done within a few hours. Have your pay stubs, copies of two years of tax returns, monthly debt payment amounts and account numbers for debt and saving accounts handy. When pre-approved, the bank will email, fax, mail, or hand you a letter (depending on the location and circumstances) that you can use when making an offer on a home.

Your rate may not be locked in until underwriting, which is after you and a seller agree to an offer on a home and complete the inspection process. This can take a couple of weeks and requires a more thorough check of your finances and credit situation. Sometimes that means the loan program you were approved for will no longer be approved or that more down payment money will be required.