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.
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?
- Is Pre-Qualification the Same as Pre-Approval?
- Why Would You Want a Mortgage Pre-Approval?
- What Documents do You Need for a Mortgage Pre-Approval?
- How Long Does it Take For You to Get Pre-Approved?
- When Should You Start Trying For a Mortgage Pre-Approval?
- The Step-By-Step Process of the Mortgage Pre-Approval Process
- How Long Does a Pre-Approval Last?
- Summing Up
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