How Long Does My Pre-Approval Last?
The first step in your home buying journey should be to obtain a Pre-Approval.
Pre-Approvals are great for two reasons.
1. A Pre-Approval will give you a clear understanding of how much you can afford to buy. More so by talking with us, you will get a better understanding not only of how much you are pre approved for, but more importantly how much you can afford.
2. Pre-Approvals not only help you determine what price range you should be shopping in, but they also come with an Interest Rate Guarantee. This means that for the period that your Pre-Approval lasts (usually 120 days) you are guaranteed the lowest rate offered by the lender. If rates go up, you still have the same rate you were Pre-Approved with. If rates go down, then you will get the lower rate.
What You Should Know About Getting Pre-Approved
– Pre-Approvals come with no obligation and are completely FREE
– You are guaranteed the lowest interest rate for 120 days
– It only takes 10 minutes to fill out the Pre-Approval application. You can even Apply Online.
What Do Lenders Look For?
A Pre-Approved mortgage is based on the information you provide on the application. The lender is assuming without verifying that the information you provided are accurate and verifiable.
Lenders typically will look at 5 main factors when reviewing a mortgage Pre-Approval:
1. Who You Are
2. Your Employment History
3. Your Income
4. Your Credit History
5. Your Debts
What a Pre-Approval Doesn’t Do
It is important to note that while we strongly recommend getting Pre-Approved for a mortgage, it is not a substitute for a mortgage approval. You should be wary about waiving any financing condition on a Purchase Agreement in lieu of having a Pre-Approval.
The reason for this is while a Pre-Approval will tell you what you can afford based on a number of factors it does NOT take into account the actual property you are purchasing. Lenders have guidelines for properties that must be met regardless of how well qualified you are as a borrower.
Also keep in mind that Pre-Approvals do not require any documentation to prove your income or other information that you used to apply. While you may earn enough to qualify for the mortgage if you are unable to confirm this information in a manner which is acceptable to the lender your Pre-Approval won’t matter very much.
The bottom line is to work with a Mortgage Associate who will make sure your needs are being met. This will make your experience much more enjoyable!
If you have any questions about Pre-Approvals, please give our office a call at (306) 244-7755 or email us today.