Mortgage lenders can give prequalification to help potential borrowers know how much home they can afford based on a basic description of the borrower’s financial circumstances. It can help you focus your search for a new home. A mortgage preapproval takes a more intricate look at your finances, including your income, assets, credit, and debt, to determine whether you can get a mortgage and what you can afford. Mortgage preapproval gives you a realistic look at your borrowing capabilities. When considering buying a home, it is important to:
Be preapproved to let sellers and real estate agents know they can trust you as a buyer and that you are serious about purchasing a home. Remember that even if you get preapproved for a mortgage, you will still have to apply for a mortgage once you have an offer accepted on the property you wish to buy. After you are preapproved, avoid making common mistakes like applying for new credit, co-signing a loan, and disturbing your steady income. These changes will alter your preapproved status, potentially resulting in completely new terms for your actual mortgage. Visit our mortgage preapproval page for more information.