When speaking to home buyers, one of the greatest causes of fear and uncertainty is the mortgage pre-approval process. But it’s not as difficult or as scary as you might think. In fact, it’s a crucial part of the home buying process, as it shows sellers that you are financially prepared and serious about buying a home. Here are three things you should know about getting pre-approved for a mortgage.
1. Pre-approval helps set an actionable budget: A pre-approval is an estimate of the maximum loan amount that you will likely qualify for. The lender will take into consideration your income, credit history, assets and existing debt. This number will help guide us as your agents in searching for a home.
2. Pre-approval makes your offer strong.Most sellers won’t even review an offer if it’s not accompanied by a pre-approval letter. So if you want to act quickly and make your offer more competitive, it’s best to get pre-approved before you look at a home. The pre-approval process generally only takes a few days to complete.
3. Pre-approval creates no binding obligations.Even if you get pre-approved with one lender, it doesn’t mean you have to use that same lender to apply for the mortgage once you are under contract on a home. You can shop around to try to find the best rates and terms, but one word of caution -- some lenders will conduct a credit check during the pre-approval process, which will result in a hard inquiry on your credit report and can affect your credit score. Check with your lender before getting pre-approved.
We hope these tools will give you the confidence to take your next steps towards finding your place in suburbia. If you have any questions about the mortgage pre-approval process, we’re here to help. We can put you in touch with a lender to get started. Reach out to us today!
We're not your typical real estate agents.As former city dwellers, we appreciate the qualities that make city lifestyle so unique, from the convenience of walking to your favorite restaurant or corner store to the vast and diverse cultural and entertainment activities. But we’ve also experienced the challenges and frustrations that are motivating you to seek change. During our transition from the city to the suburbs, we had the same thoughts, concerns and questions, prompting us to create a better way to navigate the suburban home buying journey for others.