Are you looking for a pre-approved mortgage on your house? Although it may be difficult, here are some ways you can get one, possibly easing your financial burden considerably.

Very few people are lucky enough to get pre-approved mortgage in these times of credit uncertainty. So if you have pre-qualified for a mortgage loan, you should use it to the best of your ability. A lot of people tend to confuse between pre-qualified and pre-approved mortgage. The information further will help you understand these two terms.

The difference is only a matter of that one extra step. A person is said to have pre-qualified for a mortgage when he clears a particular criteria set by the Federal Housing Authority (FHA). When such a person, who has pre-qualified, gets his financial status approved by the required authority, then he is said to be pre-approved for a loan.

✦ Steady employment history is a must. You need to have worked with the same employer for at least two years.

✦ The second criterion is to have a steady or increasing income for the past two years. Your income is important because that helps determine the amount of the loan you pre-qualify for.

✦ Your credit report again needs to show a good performance on your past credit. There should not be more than two thirty-day late payments on any forms of debt over the past 2 years. Getting your mortgage pre-approved with bad credit is not really possible.

✦ People who have been through bankruptcy can rejoice as by showing steady improvements over the past two years on your credit score, you can pre-qualify.

✦ People who have been through foreclosure too can pre-qualify but only three years post the completion of the foreclosure process.

✦ Finally, the last criterion is the average monthly income. The amount paid towards mortgage payments is typically 30% of the monthly income.

This goes one step ahead from pre-qualification. What you need to do here is to take a copy of all the financial documents that prove your financial position, as decided by the aforementioned pre-qualification requirements and attach them to the application form.

You then need to send the application to the concerned authority and await their reply. They might ask you to come in for an interview later and discuss the documents with you to check if everything is in order, before pre-approving your loan.

This means that you instantly qualify for a loan and cannot be refused the amount under any circumstances, should you clear all the requirement criteria. If the amount you pre-qualify for is too less as per your estimation, you will need to apply for a loan in the normal way.

Getting a pre-approval on your mortgage is a real boon for home buyers who have been good with their credit history and managed their finances well.