Thinking about buying a home? Getting pre-approved for a mortgage with Travis Credit Union is a smart first step on your path toward homeownership. This guide walks you through the entire mortgage process, including the documents you need. Learn how TCU can help you become a homeowner with personalized service and a variety of mortgage options.
What Is Mortgage Pre-Approval and Why Is It Important?
Getting pre-approved for a home loan is the practical way to approach homeownership, especially for first-time homebuyers. A pre-approval lets you see how much money a mortgage lender is willing to provide you for a home purchase. This amount is based on several factors, such as monthly income, your credit score and yearly tax reporting.
When you go to be pre-approved for a mortgage, the lender will check your credit score and history to verify your application and determine if you qualify for the loan. Once all the required documentation is received, if you qualify, you will be provided a pre-approval letter that shows the amount available to you for a home purchase.
It is important to note that if your financial standing changes while you are pre-approved, such as if you buy a new car or incur any other significant new debt, this will likely alter your financial status and you may not receive the loan.
Loan pre-approval letters provide more details about the amount offered compared to pre-qualification letters. They provide an estimate of how much of a loan you may receive and require a “hard pull” or credit check on your credit. Having a pre-approval in hand when house hunting gives you more knowledge about how much you can afford, more peace of mind that you can make the purchase, and shows the seller that you’re serious about buying the home.
What Documents Are Needed for Mortgage Pre-Approval with TCU?
Pre-approvals require applicants to provide personal and financial documents. These start with proof of income with a W-2 paystubs and latest filed taxes. Lenders also need documentation of assets, employment verification and a credit report that shows a good credit score. A valid, government-issued ID also is required.
The lender may also request bank statements to ensure you have funds available for a down payment and closing costs, according to Investopedia. Having all this information readily available will make the pre-approval process much quicker and easier.
Application requirements for a pre-approval will vary by lender, so it’s important to consult a mortgage loan officer to see what will be needed. Visit Traviscu.org to speak to one of our knowledgeable loan officers to get started on your pre-approval letter.
How Does the Mortgage Pre-Approval Process Work at TCU?
Travis Credit Union’s mortgage loan officers will walk you through the pre-approval process. You have the option of completing the application in person at a branch or entirely online at our Home Loan Center. Once we receive your application, one of our loan officers will reach out to gather any documents needed to complete your application.
What Are the Benefits of Getting Pre-Approved with TCU?
TCU is committed to helping you become a homeowner. With a mortgage pre-approval from TCU, you can house hunt with confidence that you are qualified for a loan; you know your purchase limits and are one step ahead of other potential buyers. TCU offers competitive interest rates, lower fees and free financial education, such as online courses, a Financial Wellness blog and other information to help you become a knowledgeable homebuyer.
How Can TCU Help You Beyond Pre-Approval
When you apply for a pre-approved loan at Travis Credit Union, you get more than just a lender. TCU is your financial partner who is focused on your financial wellness. We are here to provide you with the information, products and tools you need to better plan, save, spend and borrow.
Potential homeowners can use our free online mortgage calculators to determine what your mortgage payments may be. You can also meet with one of our mortgage loan officers who will listen to your concerns and determine if a fixed-rate mortgage, adjustable rate-mortgage or some other home loan best fits your needs.
Ready to start your journey to homeownership? Reach out to Travis Credit Union to start your mortgage pre-approval today.