Since most people don’t have the money that they need to buy a home in cash, it means that they will have to get a mortgage. If you are planning a home purchase in the near future, the first thing you should do is to contact your mortgage broker in order to get a mortgage pre-approval.
A pre-approval is not the same thing as a pre-qualification. A pre-qualification can be done in a matter of minutes but it is only a best guess as to how much a lender will actually approve you for. With a pre-approval, your broker will collect financial information from you and do a credit check. There is more work to it than a pre-qualification, but it will let you know how much of a mortgage you will be able to get.
There are many reasons why it is important to get a mortgage preapproval.
● It lets you know how much of a home you can afford so you don’t waste time looking at homes that are out of your price range.
● Most real estate agents won’t work with you until you have a mortgage pre-approval in place.
● It lets sellers know that you are serious and it could give you an advantage over other buyers.
How long is a mortgage pre=approval good for?
It really depends on the lender but in most cases, a pre-approval is good for 180 days.
What happens if the posted interest rate changes after I get my pre-approval?
If the interest rate drops after you’ve been pre-approved, you get the lower rate. It the interest rate goes up after you’ve been pre-approved, you get the rate you were originally quoted. So another advantage of getting a pre-approval is that you are protecting yourself against rising interest rates.
Can I lose my pre-approval?
In some cases, yes. If there is a major change to your financial situation such as a job change or if you borrow a large sum of money (like a car loan), it is possible that the lender could change their mind. For this reason, it is best to wait until after you close on your new home before making any large financial changes.
How do I get a mortgage pre-approval?
Contact AKAL Mortgages today to speak with one of our agents. They will gather the necessary financial information from you and then search their extensive database of lenders to find the right mortgage preapproval for you.
When we say YES! We stand by our promise. ®™
