Whether you are searching for real estate in San Diego, the South Bay area, El Cajon, Santee, or any other area in the geographically diverse region of San Diego, getting preapproved before you start purusing the listings on only makes sense. But what is pre approval, and what does it entail? Read on to find out more about the process and the necessary steps.

The advantages of pre approval for your next San Diego home loan offers the following benefits: First is being pre approved, this allows you the ability to know how much house you can afford. This is super important when it comes to shopping for mortgages. Next is the ability to know how much cash will be required for your down payment.

If you do not have the necessary cash or the required amount then you can make another plan to successfully complete your goal of home ownership. Last is the simplification of the entire pre approval process.

Having a pre approved loan amount in place before you start shopping around for your next San Diego home allows you to focus in one the homes that are right for you, and avoid wasting time on the ones that are not. Listing websites allow you to do this from the privacy of your own home. This is an extremely innovative and convenient feature, particularly if you are moving from out of state.

Many items are considered and looked at in the process of getting a mortgage preapproval. When you decide to obtain a pre approval, the following items will be taken into consideration:

Your credit rating is always viewed first and is the most important factor when approving you for a specific amount of credit for home a purchase. It is also super important to have a credit rating that appeals to lenders, (650 and higher) as well as to know what your credit report contains. Several sites offer free credit reports, and you should obtain one before your lender does. This way, you can correct any errors before you receive your loan pre qualification.

Employment History: Whether you are currently employed, as well as your employment status for the past few years can have an impact on the pre qualification amount that you qualify for. This does not mean that unemployment is a penalty just that lenders want to make sure that you are a stable, committed person, since job stability often translates into stability in other areas.

Your Monthly Income and Expenses: Your monthly income, minus your monthly expenses, is a quick way for lenders to determine how much home you can afford, and allows you, as well, to see how future mortgage payments will impact your existing budget.

Before you start your search for your dream San Diego home, speak with your mortgage lender and real estate agent about obtaining a pre approval. Once you have been pre approved, you can search smarter, knowing that once you find one that you like, you will be able to afford to finance it.