Sunnyview, thax for the great answer on credit....Should I get preapproved for a mortage loan?? If s

When you get to the next step in the approval process, the bank will generally ask for 2-3 years of tax returns, last 1-2 paystubs and last 1-2 bank statements. So start getting them together in a folder so you will be set when the time comes. All you need for a pre-approval is a phone call to your preferred lender, your income expense numbers, your current bank balances and volia you are pre-approved. Sound like you are doing great and asking all the right questions. You will be all set when you decide that it is time to buy and find the right house for you. All the best :)

I would get pre-approved to give you the best negotiating power. It is easy. Just pick a lender that you want to work with and tell them what what you income numbers are, what your cash reserves are and what price range you are considering. They will run your numbers and get you a pre-approval amount. You do not have to stick with that lender later if you find one that has a better rate after your offer is accepted, but don't pick more than a couple lenders in the same timeframe because each one will run your credit for the pre-approval process. Too many inquiries in a short timeframe can drop your credit score. I am not sure how online lenders do their pre-approval process, but it is probably similar. The mortgage forum might be able to tell you about them specifically. You can get a general pre-approval letter with the maximum amount that you are approved for, but it is better to contact your lender to print one for each separate property with a pre-approval amount that matches your offer price (or even a little below if you want room to negotiate down to your "pre-approval amount").