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Things You Should Understand About Getting Pre-Approved For Home Loan

How to get pre approved for a home loan? The answer for this question is maybe what most of people are looking for today. However, you need to know that this isn’t actually the solution that you need. Yes, the most important thing when you want to buy new home by home loan method is getting approved as the borrower from the lender party, which in this case is the loan company. However, it doesn’t means, after you get the pre-approval from the lender or the loan company, you will get the home loan that you are looking for. That’s not the way it worked.

So, What Is Pre Approved Home Loan?

Basically, pre-approved home loans are like an agreement between you, as the borrower, with the lender, the loan company. The lender agreed that you are qualified for the loan that they offered. Usually, this agreement will valid until 60 to 90 days after it was signed. And, during this time range, they lender will do many things to make sure that you are really eligible for the home loan that they offered to you. So, yes, it does give you more benefits than other client that doesn’t have this pre-approval agreement. It can be said you are one step closer to get the home loan that you need.

how to get pre approved for a home loan

The lender or home loan company will do more inspection to collect more information about you, as their potential client. They will look at your credit history, your income, asset and many more, to make sure you are the client with the risk that they can tolerate. This is where things can get tricky. If they think you don’t have the requirement to be their client, you won’t be able to get the home loans that you need from them. Therefore, it said before, even though you have this agreement, it doesn’t means you will get the home loans. Now it’s the time for important question. How to get pre approved for a home loan?

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The Ways to Get Pre Approved Home Loan

There is a time when you can’t get this pre approved agreement. If this happen, you need to do few things below:

  • Fix your credit score. Any loan company will see this part before they decide to pass the client application. With better credit score, at least 720 or higher, you will have a chance to get the pre approved home loan.
  • Repair your credit report. Usually, error on your credit report can affect your credit score and even make it lower. So, check and make sure you don’t make any mistake on your credit report.
  • Your debt is also important. If you can decrease your overall debt before applying, it will give you better chance to get approved. The best limit would be 36%, by looking at debt-to-income ratio. Just make sure it won’t goes over 43%.
  • Paying more for down payment is also good idea. It will give you more chance to get pre-approved home loan. And, even after their inspection, you also get better chance to get the home loan that you want.


Basically, if you want to get the pre-approved home loan, the first thing that you need to do is making your financial condition much better than before. More than that, you also need to choose the lenders or loan company that provides this service. For this matter, there are many online services that can help you to find as well as compare the loan companies you can find out there. And, that was how to get pre approved for a home loan.

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