Mortgage Pre-Approval

Getting a mortgage pre-approval is a very good idea before you start looking to purchase a home. Many Realtors will ask if you've been pre-approved. Shopping around for lenders is essential in order to guarantee you the best interest rate available. All lenders will assess your financial situation and figure out the amount of mortgage you can afford. Then the lender will give you a written confirmation for a fixed interest rate that will be good for a specific amount of time, usually 3 months, while you shop for your ideal home. Please keep in mind that a pre-approved mortgage is not a guarantee of being approved for a mortgage loan. When meeting with prospective mortgage lenders, you will need to provide your personal information, including identification such as a driver's license; job details, including confirmation of salary and all other sources of income; bank account details including, loans, debts, and proof of financial assets. This will provide the lender with the amount of down payment required, amount of deposit you can afford, and the source of funds for all closing costs, which are normally between 1.5% and 4 % of the purchase price. Even if you haven't found the home you want to purchase, a pre-approved mortgage will provide you with a good price range to help in your search.