What are the benefits of applying for a preapproved mortgage?
A preapproved mortgage is a preliminary approval of your application to a maximum amount at a fixed rate. It tells you exactly how much you can afford to spend on your home and what your payments will be. Your rate is fixed for a certain period which means that if rates go up during that period, you keep your fixed rate but if they go down at time of your purchase, you get the lower rate.
