You should seek pre-approval for a mortgage when you’re ready to start seriously looking at homes and considering making an offer. Here are some specific situations when it’s a good idea to get pre-approved:
- When you have a clear idea of your budget. Before you start house hunting, it’s important to have a clear idea of how much you can afford to spend on a home. A mortgage pre-approval can give you a better understanding of what a lender is willing to give you based on your income, credit, and other factors.
- When you’re ready to make an offer. In many housing markets, sellers expect buyers to have a mortgage pre-approval letter when they submit an offer. This shows the seller that you’re serious about buying and have the financial means to follow through with the purchase.
- When the market is competitive. In a competitive housing market, homes can sell quickly. Having a mortgage pre-approval can give you an edge over other buyers who may not be as prepared.
- When you want to narrow down your search. If you’re unsure of what price range you should be looking at, a mortgage pre-approval can provide clarity. You can narrow down your house search to homes that are within your pre-approved limit.
Remember, a pre-approval is not a guarantee of a loan. It is, however, a strong indication that you will be approved for a mortgage of a certain amount. Also keep in mind that pre-approvals have an expiration date, typically 60-90 days, so you’ll want to start looking at homes shortly after getting pre-approved.
Get connected with a local mortgage professional now by clicking the get pre-approved button below.