As my career in the mortgage industry has taken off I have been asked many great questions from borrowers. One that stands out the most is, "When should I get pre-approved?"
The best answer is to get pre-approved right as you start to seriously look for a new home. The pre-approval can last up to 90 days in certain circumstances, but we always advise to shoot for 60 days. That way you can have a clear understanding of how much you qualify for and what kind of price-range you need to shop.
Direct Lenders, LLC is one of the best teams to get pre-approved by. There is an accurate answer very early into the process. The answer of if and how much a borrower can qualify for is important. I came from a larger mortgage company and they were good, but Direct Lenders, LLC is great.
What is a Pre-Approval
Pre-approval is simply described as an evaluation of a borrower and their financial status. This will give all parties a close-idea of what a borrower may qualify for. In a pre-approval an estimated rate will be provided, which is a great way for borrowers to budget their home buying process.
Now, it is sometimes hard for borrowers to comprehend, but just cause there is a pre-approval that doesn't mean there is a guarantee for a loan. You ask how? Well, if there is a change to the borrowers financial situation then that can lead to rejection. That's why it is important to keep positive credit habits, stay in your current job, and continue to update your lender.
Pre-Approval vs Pre-Qualification
If I could give you one piece of advice to carry with you then that would be to be more eager to get pre-approved instead of pre-qualified. Pre-approvals hold more value and make the home buying process easier. Credit and financial information are not verified for a pre-qualification. However, a pre-qualification is a great starting point to just have an idea of how much you can possibly receive for a loan. Both are good starting points, but a pre-approval is much better.
Want To Get Pre-Approved?
In a competitive market like the one we are in that is all the more reason to get pre-approved. This gives you an edge on homebuyers who are not pre-approved when it comes time to throw an offer on the table for a home.
Give us a call today at (877) 455-0440 and ask to speak with a loan officer. Or visit our loan application page and let's get the ball rolling on the financing for your future home. We are always ready to serve our communities in any way we can.