Beginning with Pre-Approval
If you’re looking to buy a home this winter, the first thing you’ll want to do is get pre-approved for a mortgage. That way you’ll know your numbers and can set yourself up for success from the start of your home search.
How Does It Work?
What Is Pre-Approval?
As part of the homebuying process, a lender looks at your finances to determine what they’d be willing to loan you. From there, your lender will give you a pre-approval letter to help you know how much money you can borrow. Why does this help you, especially today? With higher mortgage rates and home prices impacting affordability for many buyers right now, a solid understanding of your numbers is even more important so you can truly wrap your head around your options.
explains it like this:
Freddie Mac
“ A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home . . . . Keep in mind that the loan amount in the pre-approval letter is the lender’s maximum offer. Ultimately, you should only borrow an amount you are comfortable repaying.” Basically, pre-approval gives you critical information about the homebuying process that’ll help you understand how much you may be able to borrow.
16
Made with FlippingBook - professional solution for displaying marketing and sales documents online