Why Every Mortgage Seeker Should Know About Pre-Approval

Serious buyers, who are really concerned about their property purchase begin their home shopping at the lender’s place. At the lender’s place, they first make their mortgage pre-approval. Mortgage pre-approval is the process by which the lenders determine whether the buyer qualifies for the loan or not, and for how much amount will he/she qualify. A mortgage pre-approval is significant for the home seeker for several reasons, and also to the mortgage lender. Most importantly because sellers these days are most concerned if their buyers have adequate financing or not and they are interested only in the financially backed customers. Also what mortgage pre-approval benefits the mortgage seekers is with the knowledge about what could be the value of his purchase that he could get a mortgage for.

The following are the reasons which make a mortgage preapproval beneficial for mortgage seekers

-Often buyers are more interested and eager about their houses in the beginning of their purchase, and also they may make ineffective financial decisions if later the properties of their likes cannot be financed.

-Sellers are by default more interested in buyers who have a mortgage preapproval as they can be sure of the financial condition of the buyer and also about the quote of the price that can be offered.

-It makes the buyer aware of the position in which he stands for the purpose of mortgage availability and can be more cautious and specific about his property seeking proceedings.

One should not misunderstand the process of mortgage pre-approval with mortgage pre-qualification, as both are different. Mortgage pre-qualification is an informal process, where one meets with a lender, and submits his details such as assets, liabilities, and income, and is informed about an estimated amount of qualification for the mortgage. But, in mortgage pre-approval, it is a formal arrangement, where the mortgage seeker submits his peculiar credit information and documents to the mortgage lender and is then informed about his mortgage qualification and also the specific loan amount which he could avail as a mortgage.

 The documents which needed to be produced while getting a mortgage preapproval vary from lender to lender. In whole, you need to produce the documents which are the proof of your income, assets, liabilities and debt commitments. You may also be required to produce your tax statements. Documents such as social security number, credit report and id proof are mandatory in the mortgage pre-approval process.

 For you to get the best lender, it is very critical at the time of your mortgage preapproval. You should get a mortgage pre-approval from multiple(at least 3) lenders, to be on the gaining side, as only by choosing the right lender, you can make significant interest savings and get better mortgage terms and conditions. Therefore, you must not only rely on a recommendation or reference given by any of your circle members but get mortgage approval from multiple lenders.

For detailed information about Mortgage Pre-Approval just contact our Mortgage Agent Burlington.