What First-Time Buyers Need To Know About Pre-Approved Mortgages
Tuesday Apr 26th, 2022
Getting a pre-approved mortgage is the first step in the home buying process.
➡️In today’s market most sellers expect potential buyers to have a pre-approved mortgage.
➡️It gives potential buyers the opportunity to discuss loan & budgeting options.
➡️A pre-approved mortgage helps you understand how much you can afford to spend.
➡️It also gives potential buyers the ability to move quickly when you find the home you want to buy.
What is a pre-approved mortgage?
A pre-approved mortgage means that a mortgage lender has looked at everything from your income history to your credit score to determine:
✔️how much money you can borrow
✔️how much you could pay per month
✔️what your interest rate will be
It is not, however, a guarantee that you will get a loan for the house you want to buy. The final loan approval occurs when the buyer has an appraisal done and the loan is applied to a property.
How do you get a pre-approved mortgage?
First you need to either go to a lender directly, or use a mortgage broker who would work with the lenders on your behalf. You will need to have detailed information about your income history & proof of your current employment, proof of assets, the source of the down payment, your credit score… Once you have all the documentation in order it can take as little as an hour to be pre-approved.
Once you have your pre-approved mortgage, you typically have an interest hold for 90-120 days.
Now you’re ready to start looking at houses! Please give us a call if you have any questions, we are happy to walk you through the whole process.
This information should not be relied on as legal advice, financial advice, or a definitive statement of the law in any jurisdiction. For such advice, please consult your own legal counsel, financial representative, and/or insurance representative.