Get Pre-Approved for a Mortgage

Previously the most important thing on a prospective home buyer's mind was locating the perfect home. Only after an offer was accepted, would they begin to shop around for a lender to obtain their mortgage.

Times have changed. With today's highly competitive home buying market, the pressure is now on the prospective home buyer to be as "good" of a buyer as possible. This means obtaining a pre-approval for a mortgage BEFORE searching for a home.

Mortgage pre-approval is a process where the borrower is approved for a mortgage up to a certain amount (this may simply be based on the estimated amount that the buyer is considering). The approval is based on the person’s credit score, current monthly debt payments, the anticipated mortgage payment, and the income information supplied by the borrower. The approval is usually good for a period of 30-60 days depending on any changes to the borrower's credit status. For example, if you were to take out an additional loan or open a new credit card that would change your debt-to-income ratio, your pre-approval would need to be reevaluated.

The process for getting pre-approved is relatively easy-- usually requiring a short meeting or telephone call with a mortgage broker or lender.

One of the benefits of getting pre-approved is that you know how much you can afford to pay for a home before you enter into a purchase agreement. A lot of people forget about taxes and insurance when they are looking at homes. With those additional payments, the price range you are looking at may change significantly. Another benefit is that when you find that perfect home, much of the preliminary paperwork has already been completed.

Getting pre-approved is the first step in the home buying process!! Give Signature Real Estate Services a call today (814) 451-0982, toll-free (888) 582-0983, or via email info@eriehome.com. We will consult with you regarding your finances and get you pre-approved the same day!

Steps in the Home Buying Process: