Many homebuyers miss out on one of the most important steps in the home buying process. No matter what type of real estate market, it’s a good idea to be pre-approved for a mortgage loan before the house hunting begins. Here are a few suggestions from the real estate experts at Coldwell Banker Residential Brokerage.
A pre-approved mortgage loan is a lender’s actual commitment to lend to the homebuyer, with specifications on the exact loan amount. To become pre-approved, consumers must provide personal financial information, such as income, debts and assets, to an underwriter. After a homebuyer applies for the loan, the lender will most likely approve the application with certain caveats. As the lender is committing to the loan amount and interest rate up front, the buyer knows they have their financing in place before begin shopping for a home. Advantages of having a pre-approved mortgage loan include: