Pre-approved Mortgage Loans FAQ
If you are thinking about entering the market for a new home, chances are that you will want to be pre-approved for a loan. The following information provides answers to the most Frequently Asked Questions regarding pre-approved loans.
Q: What is a pre-approved loan?
A: A pre-approved loan is a commitment from TFCU for a mortgage prior to you locating a home. Upon approval, you will receive a letter that specifies the maximum housing payment you qualify for and the mortgage amount. The approval letter is normally subject to:
- an acceptable property in average or above condition worth at least the purchase price,
- having sufficient funds for the down payment and closing costs,
- a clear and marketable title.
Q: Why should I get pre-approved?
A: To save time and to aid in getting your offer accepted. You will save time by knowing what you can afford and, therefore, not waste time looking at homes outside of your price range. You will increase the chance of your offer being accepted because the seller is more likely to accept an offer from a pre-approved buyer knowing the transaction will not fall apart because of financing.
Q: How do I get pre-approved?
A: Apply online using our Mortgage Application.
Or call us at 763-595-4010 to arrange an appointment or request that an application be mailed to you. We will need proof of income (W-2's and current pay stub or 2 years tax returns if self-employed) and a completed mortgage application. Normally, we will have a decision for you within one day. The decision is based on credit, income, obligations, employment history and the amount of available funds. We will then issue a pre-approval letter that provides the housing payment and mortgage amount available to you. Our commitment is good for six months.
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