A pre-approved mortgage is an assessment of face value of the ability of the potential buyer to get approved for a mortgage. It is common for real estate agents, sellers, and home builder to request for a pre-approved mortgage from potential buyers.
Benefits of Having a Pre-Approved Mortgage
If you have a pre-approved mortgage as you start house hunting, you will enjoy these advantages:
- Once you get your pre-approved mortgage, you are ready to get the ball rolling. You can purchase any property within your price range with ease
- You will be certain of the size of the mortgage that you qualify for. It will help you focus on shopping for homes that are within your price range
- It boosts your credibility with the seller. The seller will see that you are serious about making that purchase
- It gives you an upper hand over other potential buyers who don't have the pre-approval. It is proof that you are pre-qualified for a loan and thus will be able to buy the property
- You will be protected from increases in interest rates as you continue with house hunting
Mortgage pre-approval is using the income approach to determine the purchasing power of a potential home buyer. It doesn't take into account: credit status, employment status, debts of the applicant, etc. All these are factors that influence the decision on actual mortgage approval.
Consult with your mortgage specialist on the financing options that are available to you. Together, we will help you get your kind of perfect home at your price range.