What is a mortgage pre-approval?
A mortgage pre-approval means a loan officer has looked at your finances, your income, debt, assets, and credit history and has determined how much money you can borrow, how much you could pay per month, and what your interest rate will be.
So, what’s so great about a mortgage pre-approval?
Once a lender has pre-approved you for a mortgage, you’ll get a letter also known as the “pre-approval letter” that you can then take to sellers. This letter shows sellers you’ve already started working with a lender, and that the lender is willing to work with you. It gives sellers peace of mind to know they won’t be wasting their time with someone who couldn’t afford their house in the first place.
Want to know more about the process? We’d love to help you get started!