Finding the right home is stressful enough. Finding the right mortgage doesn't have to be. Here is a brief synopsis of why, when and how to get pre-approved for a mortgage.

Why get pre-approved

A loan pre-approval serves three main purposes:

1. It lets the buyer know the maximum loan amount they can qualify for and will therefore provide a purchase price range for which they can shop.

2. It immediately makes the buyer aware of any unforeseen credit, income or asset issues thus providing time to address these issues prior to the close of escrow.

3. A pre-approval notification issued by a reputable mortgage company lets sellers know you are a serious and qualified buyer when making purchase offers.

When to get pre-approved

The pre-approval is the essential first step of the purchase of any home. Most seasoned real estate agents will advise you to get pre-approved with a reputable mortgage company right away. By getting your loan pre-approved first, you are setting realistic price ranges, overcoming potential credit or income obstacles early and solidifying the financing upfront so that you can focus on finding the right property.

A reputable online mortgage company will allow you to research different loan programs, explore financing options and, in a few select cases, get an instant online rate and payment quote. The very best companies will offer an online good faith estimate so you can compare fees and choose the right program in an education based, sales pressure free environment.

Once you have selected a loan program, a future homeowner can complete a simple online loan application. Then, once you send your income and asset documentation back to the online mortgage lender, they will review all of the documentation and issue your pre-approval.

Congratulations! You are now ready to start making legitimate, qualified and pre-approved purchase offers.