What is pre-approval?
Pre-approval is when you have a lender review your finances to confirm that you qualify for a home loan. This should actually be your first step in the process of buying a home; you should get pre-approved before you even start looking at houses!
Why do I need to be pre-approved?
Getting pre-approved does three things for you:
It confirms that you qualify for a mortgage.
It tells you how much you can afford to borrow. This helps you look in the right price range.
It shows sellers that you are serious buyers. So, when you find the right house, sellers are more likely to consider your offer, knowing that you can qualify for the financing needed to close the deal.
What are lenders looking for?
Lenders are looking for evidence that:
You have a history of using credit responsibly.
You make enough money to afford your mortgage payments plus all your other debt payments and living expenses.
You have enough money set aside for the down payment and closing costs, plus a little extra in reserve for emergencies.
How do I get pre-approved?
Getting pre-approved is simple! You just contact a lender (We can refer you to a mortgage broker who can help you find a lender if you don’t already have one in mind), complete a pre-approval application, and provide your financial records.
If you found this helpful, please let us know! Your feedback is how we grow! Share with friends and family to equip them for home ownership. If you need more information, please set an appointment with us at calendly.com/lionhrg. We always reply to texts, or messages on our facebook page. https://www.facebook.com/Lionheartrealtygroup
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