How to Get Mortgage Pre-approval & When to Start Trying

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We all want to own a home at one point in our lives, unfortunately not all of us are lucky to afford cash buying. Therefore, the majority result in securing a mortgage loan. However, the process of securing a mortgage is not as easy as going to a bank and securing a loan. You have to undergo various checks and fulfill several requirements before you get a mortgage pre-approval.

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If you are ready to own a home, this article will give you all the information you need to get a mortgage pre-approval and enlighten you on when to start applying. First, let’s understand what a pre-approved mortgage is.

What is a Mortgage Pre-Approval?

A mortgage pre-approval is the process of determining the amount of money you can borrow to buy a home. The lenders conduct the pre-approval process, and they assess your financial profile, including your income, savings, investments, and debts.

They also perform a hard credit inquiry and leave no stone unturned.  Once they have gathered all the information, they can estimate the kind of house you can afford, and then they will pre-approve you for a specific loan amount.

When a lender issues a pre-approval, it is an indication that they are ready to move forward with the loan. Pre-approval also helps you set a price range when shopping for your dream home and puts you in a much better position when talking to the sellers since they know that a lender backs you.

Related Article: First-time Homebuyer Mortgage Programs

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