When Should You Get Pre-Approved For A Mortgage?

by Jesse Marks 11/17/2019

If you’re ready to buy a home, you probably have done a lot of research. One thing is sure: You know you need to get pre-approved for a mortgage. It’s perhaps the most critical step in the process of buying a home for a variety of reasons. There’s down payments and debt-to-income ratios, and other financial issues to worry about. You need to know what type of mortgage you should get. To help you understand what kind of mortgage you need, you should get pre-approved.


Understand The Pre-Approval Process


There are many misconceptions about pre-approvals. First, buyers need to understand that there is a difference between a pre-qualification and a pre-approval. A pre-qualification merely scrapes the surface of your financial state, while a pre-approval goes through everything a mortgage company will need to grant you a loan. You may be pre-qualified for a much higher amount than you can actually afford, for example.


Pre-Approval Defined


A pre-approval is a lender’s written commitment to a borrower. The approval states that the lender is willing to lend a certain amount of money for a home. The lender obtains the following from the buyer:


  • Employment history
  • Credit report
  • Tax returns
  • Bank statements


The time and effort that it takes to get a pre-approval is worth it because everything will be ready for the lender to grant the mortgage once an offer is made on a home. It also gives the buyer an upper hand in finding the home of their dreams. Many sellers require a pre-approval with an offer.


When To Get A Pre Approval


As soon as you know you’re serious about buying a home and are ready to start the house hunt, you should get pre-approved. Pre-approvals do expire after a certain amount of time, but lenders can renew them with proper notice. 


The Importance Of The Pre-Approval


Many buyers feel that they can skip the pre-approval process altogether. It has many benefits. Besides giving you a better look at your finances and how much house you can afford, pre-approvals can:


  • Give you the insight to correct your credit score and help you correct credit problems
  • Help to avoid disappointment when you find a home you love
  • Allow first-time buyers to see all of the costs involved in buying a home


A pre-approval is a handy thing to have, and it’s not just because the experts say it’s essential. Getting pre-approved for a mortgage can help you to be more on top of your finances going into one of the most significant purchases you'll ever make in your life. 

 

About the Author
Author

Jesse Marks

I spent years as a Law Enforcement Officer with the DC Housing Authority Police Department; it was my duty, and a privilege, to protect and to serve the public interest. I use that same dedication and commitment to my clients advantage. With the proper information and guidance, your home buying or selling, adventure...will not be intimidating. INTEGRITY Buying or selling a home is the most important transaction in your life. Because of that, it is important that you work with someone with integrity, that you trust, and feel is a market expert. People trust me with their most-valuable asset. It's a responsibility I take very seriously. I know that your success is my success. LOCAL EXPERTISE I offer local expertise in a home market tailored to meet your needs. As a local professional, I know the neighborhoods, schools, market conditions, zoning regulations and local economy. I will do the leg work, keeping you up-to-date with new listings and conditions as they impact the market. I will make the process as pleasurable and stress-free an experience for you as I can. SUCCESS I don't measure my success through awards received or achievements, but through the satisfaction of my clients. Whether you are looking to buy or sell your home, I will provide sound and trustworthy advice to help you achieve your real estate goals. Let me guide you through the complexities of buying or selling your home, eliminating hassles and stress. I look forward to working with you.