Mortgage Pre-Approvals Explained
2 minute read
June 2, 2014


pre-approved words

Once you’ve decided that you are ready to purchase a home, getting pre-approved for a mortgage loan is the first thing you should do. Understanding what a mortgage loan pre-approval is will be a guide in your home buying process.

Pre-Approval Defined

A pre-approval is a preliminary loan approval from a mortgage lender. It is an approval that is issued before the lender has any documentation or subject property information from the borrower.

What to do with a Pre-Approval

After getting your pre-approval from your lender you should do the following things:

  1. Read over all of the stipulations and conditions of your pre-approval. Be sure you can meet all of the conditions listed.
  2. Start collecting the required documentation that the mortgage lender requires.
  3. Present the letter to your realtor and discuss what your desired maximum home sales price.
  4. Start looking for homes within your price range.

Getting pre-approved allows you to know how much you can afford and will help you to become prepared for the loan process once you’ve entered into a real estate sales contract.  Remember that a pre-approval is just preliminary, you must be able to meet all of the conditions of the pre-approval before getting your mortgage loan. Make sure you thoroughly understand your pre-approval and contact your  mortgage provider with any questions you may have.

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