Make the time to get preapproved for your Home Mortgage Loan
After you’ve determined how much house you can afford, the next step is
to get preapproved for the amount you’re looking to borrow. While prequalifying gives an
estimate of how much you can afford, preapproval means your lender verifies that you are approved
for a certain amount during a fixed timeframe.
If you are preapproved and you find your dream house that’s within your budget,
you’ll have a better chance of buying it because the seller doesn’t have to worry
that you will be turned down for the loan. Preapproval will also save you time during closing
since you’ve already completed the closing and underwriting process with your lender.
How do you know how much to get preapproved for?
Well, preapproval follows the same process as the loan application, so it will be close to the
amount you can expect to borrow. You’ll need to submit income and asset information to your
lender. You’ll also want to know your FICO® scores since those will influence the amount you
can get preapproved for – lenders will likely approve you for more when your FICO® scores
are good.
Taking the time to get preapproved will make you a more attractive buyer than someone who is
not preapproved. Just tell your lender that you want to get preapproved and you’re on your
way. Don’t take a chance that could cost you the house you really want – get preapproved
and feel confident when you’re ready to make a bid.
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