by Christy Bieber | June 18, 2021
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Don't start shopping for a home until you've checked it off your list.
Buying a house can be fun, but it's also stressful.
After all, you need to make sure you find the right property at a good price and that you can qualify for a reasonable mortgage loan to pay for it.
To make this process much easier for yourself and reduce the stress and complexity of your home purchase, there's one simple move you should make early in the process: make certain that you get a mortgage pre-approval before you start visiting properties. Keep reading to see why.
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Getting pre-approved for a mortgage involves shopping around for different mortgage lenders, choosing the one that offers you the best rate and terms, and submitting a pre-approval application. You'll need to include detailed financial credentials when you apply for pre-approval, including information about your credit history and income.
Lenders will review all of your information and decide how much money to lend to you and what rate you'll pay. You can then get a pre-approval letter indicating the amount you're approved to borrow. And you can often lock in the interest rate you were offered for a period of time, so you'll know up front exactly what your loan will look like.
While a pre-approval isn't an ironclad guarantee that you will absolutely get your loan, it does mean that as long as your house fits the lender's criteria and your finances don't change, you should be able to move forward with borrowing as planned.
Getting pre-approved for a mortgage reduces the worry associated with home buying for a few key reasons:
The bottom line is, if you're borrowing to buy a home -- as most people do -- you're going to need to go through the mortgage approval process at some point. If you decide now is a good time to buy a home, check this task off your list up front so the rest of the process can be more focused on the fun aspects of finding your perfect home.
Chances are, interest rates won't stay put at multi-decade lows for much longer. That's why taking action today is crucial, whether you're wanting to refinance and cut your mortgage payment or you're ready to pull the trigger on a new home purchase.
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