If you are looking for a new home, be sure you are pre-approved. With a mortgage pre-approval, a licensed mortgage professional can do a more complete verification prior to sending you shopping for a home, and with that done, the dollar figure you are going shopping with is actually what you can spend.
Getting pre-approved for your mortgage loan is a wonderful opportunity to benefit from. It lets you know you can qualify for the funds you need to buy a home. It allows you to find out what that maximum loan amount is you qualify for. Then you can shop for homes that are within that price range. Your interest rate can be locked in for a period of time up to 120 days. This gives you ample time to find a home you love.
The locked in rate ensures you get that price or lower. If the rates go up, you won’t be paying the higher percentage. However, if they do go down, you can reap the benefit of that additional lower price.
You will need to fill out an application in order to get pre-approved. There is a list of information you will need to submit with that to qualify. If the lender determines they need any additional documentation, they will reach out to you in order to gather it. With the pre-approval completed, you can confidently look for a home, knowing that financing is going to be three when you find the home of your dreams. It also gives you negotiating power with a seller because they know you can get the money to buy it.