Before you start searching for a home to purchase, you’d be well-advised to get pre-approved for a mortgage.
A mortgage pre-approval will tell you in writing that you are able to qualify for a mortgage based on your current income and credit report. While this isn’t necessarily a promise that you will be approved when you finally make an offer on a home, it is a step in the right direction.
Once you have submitted the appropriate documentation and your lender has had a chance to review it, you’ll be given a certain approval limit. That way you’ll know exactly how much you can afford to spend on a home purchase. This allows you to focus only on properties that you can afford and avoid disappointment. A pre-approval letter will typically specify a term, interest rate, and loan amount.
It’s important to note that pre-approvals don’t last forever. Usually, they’re only good for about 3 months, though in some situations they can last longer. Once they expire, you’ll need to get pre-approved again if you so choose. Knowledge is priceless, get yours here!
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