 TITLE: First-Time Home Buyers: How to Qualify for Loans, Programs and Grants CONTENT: Getting Preapproved for a Mortgage\n----------------------------------\nBefore you start house hunting, it's wise to get preapproved. Not only does this show sellers that you're serious but also that there's a good chance the sale will go through if they accept your offer. Take these steps before seeking preapproval.\n*   **Don't confuse a preapproval with a prequalification.** A mortgage prequalification gives you an estimate of how much you can borrow, but it doesn't require a credit pull or in-depth information. A preapproval, on the other hand, requires a full mortgage application along with supporting documents and a hard credit pull. A prequalification can help you determine your budget but isn't as convincing as a preapproval.\n*   **Gather your documents.** A mortgage is a major financial commitment, both for you and the lender. So expect to share a lot more documentation than you would if you were applying for other loan types. Requirements can vary by lender, but expect to at least share your pay stubs, W-2s and tax returns for the past couple of years, bank statements for the past few months, other applicable income documents, information on your other debts and copies of your government-issued ID.\n*   **Shop around.** If you're planning on buying a home soon, consider getting preapproved by more than one lender. This won't necessarily make a difference to sellers, but it can give you a chance to compare interest rates and terms with several lenders, as well as their customer service. That way, when you find the house you want, you'll be ready to go with the lender that offers the best terms. END