Pre-Approved Mortgage

A Pre-Approved Mortgage is a tentative promise from a lender that he will loan you a certain amount of money for the purchase of real estate, for a certain term and at a certain interest rate. In this process, the lender will base its decision upon your income and credit score.

As a general rule, your housing costs, including your mortgage payment, taxes and heating expenses shouldn’t be more than 32% of your gross household monthly income. This will give you an idea for how much of a mortgage you may be approved.

A Pre-Approved Mortgage is a tentative determination by the lender to give you a certain amount of money as a loan. It is not a final decision and is usually only valid for 90 to 120 days. The final decision may depend upon whether the appraisal of the real estate is high enough to protect the lender in the case of default, whether the title is clear, whether the property meets inspection standards etc.

ADVANTAGES OF A PRE-APPROVED MORTGAGE
Though it sounds basic, knowing how much you are able to spend before purchasing a home is always a good idea. With a pre-approved mortgage, you know exactly where you stand before shopping for a home. In fact, many realtors will want to see a pre-approval before they will begin to help you look for a home.

We strongly urge a prospective home buyer to consider getting amortgage pre-approval. We can provide you with the tools necessary to obtain a pre-approved mortgage, including an online mortgage application, and will walk you through every step of the proccess.