A majority of first time home buyers need a mortgage in order to finance their home purchase, so make sure you’re prepared before you begin looking.
When you’re thoroughly prepared before you begin looking for your dream home, you’re able to focus your search on what you are truly looking for and make the move when you’re ready.
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.