So, what is a Mortgage Pre-Approval?
Lenders offer borrowers either a pre-qualification letter or a pre-approval letter, but most REALTORS® recommend you get a pre-approval letter before your begin shopping for the home of your dreams. A pre-qualification letter states the amount a lender thinks you’ll be to borrow based on your income and credit profile without any actual documentation.
Your search for your dream home will benefit with a pre-approval for two key reasons:
- You’ll have completed the credit check and paperwork requirements for a mortgage, so you’ll know your ability to finalize a home purchase. If the lender finds a problem with your credit or an error on your credit report, you’ll have time to fix it before making an offer.
- Since your documentation will already be in place, a mortgage pre-approval will likely speed up the process once you make an offer.