Is Applying for Mortgage Pre-Approval Important or Required?

Approved mortgage loan with house key
apply for mortgage pre-approval before making an offer on a home, it certainly is beneficial. It is important to mention that pre-qualification and pre-approval are not the same things. With pre-qualification, lenders use the information you supply, without any verification, to determine how much they are willing to borrow. With pre-approval, you go through the same verification processes, just like you were applying for your mortgage. The end result is an exact amount of money lenders will borrow you to purchase your home. Completing pre-approval processes unlock these added benefits:
  • Sellers will know you are serious when you make an offer.
  • Sellers tend to favor buyers who are pre-approved rather than having to wait for you to secure financing.
  • You will save time by not looking at homes that are outside what you can afford.
  • You will know the minimum amount of money you will need down to finalize the mortgage.
  • You will have an idea how much additional money you will require for inspections, closing, and so on that you cannot finance.
  • You will know what homes you can afford and whether you will need a larger down payment to get the home you truly want.
  • You will know if there are things on your credit report you need to clean up before reapplying to get a lower rate or a higher mortgage amount.
As you can see, taking the time to get pre-approved for a mortgage is well worth it. To start the pre-approval process, or if you have further questions about different mortgage financing options, please feel free to contact Elite Financial at (800) 908-LEND or (805) 494-9930 today!
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