Getting a mortgage pre-approval is always one of the first things we suggest all buyers do before seriously considering purchasing a property and here’s why.
Getting pre-approved for a mortgage is important so you can know how much a lender is willing to lend as well as how much you can afford. It will then make your process so much easier when deciding where(Location) to buy and what type of property to buy. A pre-approval doesn’t mean you need to spend the amount offered to you by a lender, you can buy a home that is priced lower than your pre-approval amount but most likely not the opposite.
You will know what interest rate is being offered to you and what your regular payment amount would look like. Additionally you will know what you’re paying toward the principal and interest also how long it will take to pay off your mortgage. They might even be able to give you different options.
Getting a pre-approval will in most cases lock in the interest rate you have been promised for a certain period of time, usually 60-90 days preventing any rate increases from affecting you.
Peace of Mind
Some lenders will require you to pay some debts before closing to be able to receive your loan. If you know about this at the beginning it will definitely save you from future tears
Are you pre-approved and don’t know how to start? We would be very happy to answer any and all of your questions and help you in your home search.