Why a Pre-Approval is Your First Step when Buying a Home
Posted by Vicki Flyth on
Home buyers should enter the marketplace with more than a vague idea of their borrowing ability. They should seek a written statement from a mortgage lender or mortgage broker before negotiating to buy a house, that they would qualify to purchase a home for up to a stated maximum price with a specified down payment.
“Pre-approvals” are usually based on the consumer supplying detailed creditor information, but are always contingent on the consumer’s credit information proving accurate and satisfactory at the time the consumer actually applies for the loan and the property purchased being worth enough to support the required LTV ratio. Often, pre-approvals are only good for a certain number of days (e.g., 60 or 90 days) and don’t set a…
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