All About Pre-Approval
One of the first steps in your home-buying journey is getting pre-approved. To understand why it’s such an important step, you need to understand what a pre-approval is and what it does for you.
A pre-approval is a letter from a bank or a lender. It documents how much the bank is willing to lend you, over what period of time, and what the interest rate would be.
This letter is valid for a limited period of time.
It gives you important information about the home-buying process. This will help you understand your options and what you may be able to borrow. It will make it easier when you search for homes because you’ll know what you can afford.
Higher mortgage rates are impacting affordability for many buyers today. A solid understanding of your numbers is even more critical.
Pre-approval shows the seller that you’re serious about buying their house. This can make the difference between their accepting or rejecting your offer. It also maximises the chances you’ll be able to actually close the deal – and the sellers want to see that.
