Top 10 Articles On Why Mortgage Pre-Approvals Are Important

There has been some confusion among those looking to buy a home and qualify for a mortgage loan regarding the difference between a mortgage pre-approval vs a pre-qualification letter. Indeed, they sound pretty similar, so hearing these terms before or during the hectic time while considering buying a can only add to add to the confusion for novice buyers.

One of the most important steps, and usually the first, during the home buying process is obtaining financing. There are many different types of mortgages available. Each mortgage product varies from the amount of money needed down to the acceptable debt-to-income ratios and everything in between.

One of the most common home buying myths that exists is that when buying a home, you should find a home before getting a pre-approval. There are some real estate agents who will show a home, or several homes, to a buyer without knowing whether a buyer is pre-approved or not.

Are you ready to start looking for your next home? One of the first steps in preparing to purchase a house is finding out from a lender what buying power you have and if you can obtain mortgage financing. Your employment and financial situation will determine if a pre-qualification or a pre-approval is right for you.

Your realtor may encourage you to get a mortgage pre-approval. But do you really need one? According to Bankrate.com, fewer than 10% of mortgage borrowers secured a pre-approval before closing a deal in 2012. One of the reasons for such a low percentage may be awkward timing.

First of all, let's make an important clarification. Pre-qualifications are not the same as pre-approvals. Pre-qualifications will give you an idea of what kind of loan you may qualify for and can typically be completed in minutes. This informal estimate may be just fine for those in the very early stages of the home buying process.

What's the difference between a Pre Qualified vs Pre Approved Mortgage? A Mortgage adviser can Pre qualify you to confirm that you meet the general guidelines for a loan and can also tell you how much house you can afford, based on the information you provide. The next step is a Pre Approval.

When you make the decision that you want to buy a home, the fun and exciting part is actually looking for homes online and in person. However, before you actually start to look in person or before you fall in love with a certain property you need to at least get pre-qualified and even better get pre-approved.

Prior to starting your home search and qualifying for a home mortgage loan, it's important you know the difference between a mortgage prequal, pre-approval and a conditional loan approval. Many people, even lenders and real estate agents, wrongly use the terms interchangeably.

The home buying process can be exciting, but also stressful. Getting a mortgage pre-approval prior to home shopping can dramatically increase your odds of acquiring the home you really want. A mortgage pre-approval should be a home buyer's first step when purchasing a home.

The homebuying process can be exciting, but also stressful. When there are a large number of buyers in the market for real estate, the odds of being able to purchase your desired home can be low. However, getting a mortgage preapproval prior to home shopping can dramatically increase the odds of success.