What is a pre-approval?
This allows you the ability to get approved for a specific loan amount prior to finding the home you want to purchase. The loan is underwritten and the lender commits to a specific loan amount. This can give you a great advantage with a homeowner or realtor if someone else is interested in the same home at the same time. Also, if you’re thinking about refinancing and want to payoff creditors or take cash out, but not sure you would qualify you can apply for a pre-approval and could save on the cost of getting an appraisal on your home until you know if you qualify.
This allows you the ability to get approved for a specific loan amount prior to finding the home you want to purchase. The loan is underwritten and the lender commits to a specific loan amount. This can give you a great advantage with a homeowner or realtor if someone else is interested in the same home at the same time. Also, if you’re thinking about refinancing and want to payoff creditors or take cash out, but not sure you would qualify you can apply for a pre-approval and could save on the cost of getting an appraisal on your home until you know if you qualify. 3.
A pre-approval provides an interest rate guarantee from a lender for a specified period of time, usually 120 days and for a set amount of money. The pre-approval is calculated based on information provided by you and is subject to certain conditions being met before the mortgage is officially approved. Conditions would include things like employment and income confirmation, proof of down payment, property confirmation, and more. Many real estate agents will require you have a mortgage pre-approval in place before they will work with you. This is to ensure that they are showing you properties within your affordable price range.
