The mortgage pre-approval is an important first step in the home buying process. The pre-approval is not the same as a pre-qualification and is a much stronger representation of your ability to purchase a home.
The Mortgage Preapproval Process
A mortgage prepapproval means that the lender had received and reviewed all of your income and asset documentation and determined that the file should be approved. A pre-qualification is only a review of the credit and information provided at the time of application. The pre-approval represents a much better borrower to a seller or real estate agent. With a pre-approval your offer to purchase a home is more likely to be accepted. In the current low inventory environment there are few homes to choose from. Get a pre-approval letter and put yourself in the best possible position for success.
How to Apply For a Mortgage Preapproval
Applying for a mortgage is easy. There are no application fees and if you have credit problems, your mortgage representative will set you up with a credit improvement plan to get you qualified as soon as possible. Schedule a consultation with a mortgage consultant today.
Call (518) 324-5544 if you have any additional questions
If you are already pre-approved, it may still be worth talking with other lenders. All lenders offer different terms and it is possible that you can benefit from a lower interest rate or closing costs. Shopping for a mortgage can seem like a daunting task, but remember, you will be paying on your mortgage for 15-30 years. Making the extra effort to make sure you are getting the best possible mortgage terms should be your top priority.
How Mortgage Inquiries Effect Credit Score
When you apply for a mortgage, a credit inquiry can impact your credit score and possibly drop the score by a few points. This does not mean you shouldn’t apply with another bank. The credit bureaus algorithms understand that you are shopping for a mortgage and typically three credit inquiries in one week will not lower the credit score any more than one inquiry.
If you are applying g for credit multiple times over a linger period of time, the credit drop might be more dramatic. The best thing to do is apply with three lenders early in the process as to not spread out the credit inquiries resulting in a more significant drop in your credit score.
Read More; The Perfect Mortgage Application