For those who are financing, mortgage pre-approval is normally the first step in the home purchasing process. Lenders pour-over loan applications to ensure that homebuyers are financially viable candidates for the mortgage they are seeking to secure. This process determines the exact budget with which a prospective buyer has to work. Lenders will only lend what they feel a buyer can responsibly afford, therefore keeping with a sound budget is key.
Perhaps you have already gone through the pre-approval process, however, it has been a while and you are unsure about your pre-approval is still good. The shelf life is not indefinite and pre-approvals are usually good for between 90 and 180 days.
If you have yet to embark on the pre-approval process, start by seeking out a trusted lender. Make sure to schedule an appointment and ask the lender which financial and personal documents you will need to provide in order to begin the process. Once the lender has had a chance to review your documents, he will issue a pre-approval letter detailing the exact loan amount for which you may qualify.
It is important to get pre-approved before your begin shopping for a home. You don’t want to waste time looking at homes beyond your budget. In addition, you want to be ready to make an offer when you find a home you like that you can afford. Your realtor will need to submit your pre-approval letter with any offer you submit as sellers want to see proof of funds.
In the event that your pre-approval has expired, be sure to contact your issuing lender in order to update your personal documents to have the pre-approval reinstated.
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