Many homebuyers assume that if you're pre-approved, then your mortgage is basically guaranteed.
This isn't always true. A pre-approval doesn't automatically mean that a Lender will approve your mortgage.
Here's what a pre-approval actually is and whether you should get one or not.
A pre-approval is a conditional approval based on your current financial situation.
The pre-approval process requires the collection of credit information, a full credit check and collection of necessary documents required to support your financial situation.
When your Mortgage Broker has successfully completed your mortgage pre-approval, you can feel confident knowing that Mortgage Lenders will give you a mortgage.
However, before a Lender will fully approve a mortgage, they must review and approve the details of the property your attempting to purchase which may include the need for an appraisal. The Lender needs to be comfortable with the condition, location and the price of the property.
Should you get a pre-approval?
A pre-approval is free, it provides you with piece of mind knowing exactly how much you're qualified to spend so that you can confidently shop for your dream home, and having a proper pre-approval through a Professional Mortgage Specialist (such as myself) gives the seller confidence knowing that if you write an offer on their house, chances are really good that the deal will go through so they are more likely to accept your offer!
Contact me today to discuss the pre-approval process in more detail.