Are you thinking of buying a home in the near future? If so, you’ll want to get Rocket Mortgage pre-approval. This will show sellers that you’re serious about buying and give you an idea of how large a house you can afford.
With that in mind, the first question is – how to get a Rocket Mortgage pre-approval?
To get pre-approved for a Rocket Mortgage, you need to fill out a form online and allow the lenders to check your credit. You are not required to give away documents, but you will need to prepare the info about your income and assets by offering pay stubs and bank statements.
Stay tuned – we’ll walk you through the whole Rocket Mortgage pre-approval process. We’ll be covering everything from what actually is the pre-approval to how long it lasts and how much it costs.
Before we get into the whole pre-approval for the Rocket Mortgage process, let’s clarify what exactly it is. After all, getting a loan or a mortgage is a long-term commitment, and you shouldn’t rush into it without all the necessary information.
Firstly, pre-approval is a mathematical evaluation done by the lender in which they calculate just how much you can spend on a home. Getting a Rocket Mortgage loan pre-approval is a sign to a seller that you are serious about buying the property.
With a pre-approval in process, a seller will know that your finances have been checked and that you can actually afford the amount of money you are offering. Furthermore, those with pre-approval are usually given an advantage over those without one.
If you haven’t been applying for a mortgage before, you’ll run into many new terms. Two of those (that you shouldn’t mix up) are prequalification and pre-approval. Basically, prequalification and pre-approval are two forms of mortgage approvals. They refer to the processes taken by a lender to ensure that a client can afford a mortgage.
When it comes to prequalification, it is a process where the lender collects basic financial info about you, and then they estimate how much you can afford. With prequalification data, you’ll have an idea of just how much money you’ll be approved for.
What makes the prequalification different from pre-approval is the fact that it relies on self-reported info instead of credit card reports and financial documents. As a result, it is less reliable than a pre-approval.
If you are wondering can you get pre-approval from Rocket Mortgage, the simple answer is yes. However, there are a lot of things that go into the whole process. This by no means makes it hard and complicated, and once you understand it, it will be easy to get pre-approved.
To start the process, you need to collect all the essential documentation that will allow the lender to access your finances. These documents include:
- Proof of income – there is really no limit to how much you have to earn to buy a property. However, the lender will need to know if you’ll be able to cover the monthly mortgage payments. Besides the paycheck, the lenders also take into consideration benefits, allowances, alimony, and social security payments.
- Proof of assets – the lender needs to be sure that you’ll be able to pay the mortgage if you run into a financial emergency. That’s where having assets such as savings, deposits, and stock come in handy.
- Debt-to-income ratio (DTI) – the lender needs to know also that you can cover all of your bills. This is why your monthly DTI ratio is important. It will show just how much of your income goes for bills and how much money you are left when all is paid.
- Credit score – this numerical rating shows how reliable you are as a borrower. The higher the score, the more reliable you are, which means you’ll be able to pay all your bills on time. Furthermore, those with high credit scores get access to a wider range of loan types, and they get lower interest rates.
When you are getting the Rocket Mortgage pre-approval, know that it is determined by a lender, and it shows the amount you’ll be able to pay when buying a new home. Rocket Mortgage will determine your pre-approval by looking into your credit report, income, and other financial statements you provide.
Applying for a Rocket Mortgage loan is completely free. You won’t be charged to see the mortgage recommendations or get approved. However, even though Rocket Mortgage pre-approval cost is non-existent, there will be some costs if you choose to proceed with the loan.
The cost is determined by the size and type of the loan, but also the credit score and interest rates. Each lender has a way of explaining costs, making it hard to know which one offers the best deal. That’s why it is important to choose the lender based on various factors such as reputation and types of loans they offer.
For those in a hurry to get a loan and finally become homeowners, time is money. So if you are wondering how long does Rocket Mortgage pre-approval lasts, don’t worry – it won’t take forever, quite the opposite.
Since you can apply for a loan online, expect the answer shortly after you fill out the Rocket Mortgage pre-approval form. However, to get pre-approval for a home loan that Rocket Mortgage offers, ensure you answered all the questions and submitted all needed documentation.
Also, another important thing to consider when wondering how long will take for pre-approval Rocket Mortgage to be completed is – availability. Ensure you respond to all the emails and phone calls you receive from the lender, and the pre-approval will be done in the shortest time possible.
When you get pre-approved, you’ll receive a letter with that information. It is important for all homebuyers because most real estate agents want to see it before showing you a property. The letter is a guarantee that you are a serious buyer and that they are not wasting time showing you homes that are not within your budget.
When you fill out a form on a Rocket Mortgage site for a pre-approval and get approved, you will receive a letter that states the amount of the pre-approval. Also, the letter will inform you about loan options, and it will show if your credit, assets, and income have been verified.
Know that when you get a pre-approval letter from Rocket Mortgage, it comes with an expiration date. The letter is valid for 90 days from the date it is issued. However, if you pass the Rocket Mortgage pre-approval expiration date, you can extend it with updated income information, asset verification, and a new credit check.
Pre-approval can affect the credit score, but it is still an essential step in buying a property. Luckily, the dent in your credit score will be only temporary if you continue paying the bills on time and keep the debt low.
Furthermore, you don’t have to worry about the pre-approval effect on your credit score if you apply for a loan with several lenders. Just ensure those pre-approvals are made within a few days. Each hard inquiry will be counted as a single inquiry for scoring purposes.
To understand better both soft and hard inquiries check out the table below:
|Types Of Credit Inquiries||Details|
|Hard Inquiries||– Cause short-termed decrease in credit score|
– They remain on the credit score for two years
– They provide the lender with a full credit report
|Soft Inquiries||– Don’t cause an impact on the credit score|
– They are not included on a credit report
– Provide the lender with fewer details
What Kind of Credit Score Do You Need to Get Approved?
If you meet eligibility criteria, you can get approved with a credit score that is as low as 580.
You can use the Rocket Homes website to check your current credit score. Keep in mind that the score you get from Rocket Mortgage might be a bit different from the one credit card company provides you with.
Rocket Mortgage uses FICO Score. That’s why the lenders encourage anyone with a score even slightly below 580 to apply.
One of the reasons you should apply for a pre-approval is that it can show you whether your application will be accepted or denied at the end of the process. You’ll get rejected only if you don’t provide all the necessary documentation and info when you apply online for pre-approval. However, it is possible to be denied at closing if the circumstances change drastically between a pre-approval and the closing.
To avoid this, maintain constant contact with your lender throughout the whole process so that they can assist you in avoiding activities that could jeopardize your ability to obtain a mortgage. Because if you have insufficient funds and credit, you might be denied at the end.
Are you worried that your pre-approval Rocket Mortgage will be too low? Or maybe you are hoping that your Rocket Mortgage pre-approval will be high? With the online calculator, you don’t have to wonder.
While you are waiting for the pre-approval, enter the home price, down payment amount, loan terms, and other necessary info into Rocket Mortgage Calculator, and get an estimate. The online calculator will show you estimated monthly payments broken into principal and interest, taxes, and insurance costs.
When you are looking for an easy online way to get pre-approved for a mortgage, Rocket Mortgage got you covered. Just visit the website and start your journey. Filling out the online form is the fastest way to get approved.
All you have to do is allow Rocket Mortgage experts to check your credit. You won’t need to provide documents, just the info about assets and income. Furthermore, you can sync your app with the bank accounts, so the lender will know exactly how much money you have available for closing costs and down payment.
Sometimes unpredictable things happen. If you are in the middle of the pre-approval process and suddenly you find yourself changing the plan of becoming a homeowner, you might wonder – how to cancel Rocket Mortgage pre-approval? Immediately contact the Rocket Mortgage customer service because there might be some third-party expenses you are expected to pay when you start the process.
Filling out a form and getting pre-approved is the first serious step in becoming a homeowner. Once all the financial info is verified, you’ll know how much money is there to spend on a property. That being said, getting pre-approved is beneficial for everyone involved. It will show your dedication, and it will make the house-hunting process easier. That’s why don’t wait up. Go to Rocket Mortgage’s website and fill out an application.