Tag Archives for " Pre-approval "
If you plan to purchase a home, even before you get started, you should get a pre-approval for your mortgage because at some point, sellers are going to ask you for this. But before that, let’s get to know first the basics of pre-approved mortgage.
What is a pre-approval?
A pre-approval, in the real estate lingo, pertains to a preliminary commitment in writing from a lender stating that a borrower would qualify for a certain loan amount based on different factor’s set by the lender. A pre-approval holds much more weight that just a loan pre-qualification, which is only an estimate of the amount you can borrow.
Why should you get a pre-approval?
It’s important to get a pre-approval for several reasons:
What are the things you need to be approved for a mortgage?
How do you get a pre-approval?
Applying for a home loan pre-approval is similar to the usual home loan application process. You will have to begin the process with talking to a few lenders to know which loan suits you best in your financial situation. Hence, you will need to show what you earn, what you own, and what you owe – these are the requirements mentioned above. Normally, the pre-approval process takes 24 to 48 hours to obtain a letter.
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