Mortgage pre-approval is absolutely critical in a market like we are in now. So what exactly is pre-approval and why is it so important?

A mortgage pre-approval letter is a formal document from a financial institution stating that you have qualified for a loan and for what amount. In todays market, it is critical that you get pre-approval before you are ready to put in an offer on a home. Below are just a few benefits of being pre-approved:

  • Helps streamline your home search by only looking at homes that are in your price range

  • Proves to your real estate agent that you are a credible buyer that will be able to follow through with a purchase

  • Lets sellers know that if they chose your offer, you will be able to carry out the financial obligations of the contract

  • Helps your offer stand out in such a competitive market

To get pre-approved, you will need to speak with a lender at a financial institution. This is usually a bank, but can also be institutions such as credit unions. The lender will review your current financial situation and determine whether you qualify for a loan, and if so, how much. They will also determine potential loan types that you qualify for, and be able to lock in an interest rate for a certain period of time. This is extremely helpful in the rising interest rate environment that we are in currently.

At White Oak Properties, we work with lenders everyday. We would love the opportunity to help point you in the right direction of getting pre-approved, and starting your home search!