A mortgage pre-approval is important to the home buying process. But what is a pre-approval? What does it mean to you as a buyer? Is is the same thing as a pre-qualification? Here are the answers to frequently asked questions about mortgage pre-approvals.
A mortgage pre-approval is one of the first steps you should take in your home buying process. It gives you confirmation of the type and amount of mortgage you qualify for based on financial information and documentation provided to the lender. A pre-qualification, by comparison, will only give you an estimate of what you may qualify for based on verbal information you provide the lender.
Why should you get a pre-approval?
There are many good reasons to get a pre-approval before starting your home search. One major reason is to understand what you can afford and narrow down your home search to those properties that fit in your budget. Pre-approvals also give you a good idea of what your mortgage will cost per month. When you find a home you love, a pre-approval will show the seller you are serious about your offer and that you have your finances in order.
Is there something better than a standard pre-approval?
The HUNT Mortgage Pre-Purchase Commitment Program delivers a fully underwritten commitment, subject only to collateral conditions. To reassure buyers, HUNT Mortgage backs its commitment with a $1,000 guarantee. If a buyer does not close on a transaction due to the buyer’s mortgage application failing, we will pay the seller $1,000 (certain restrictions apply). The guarantee distinguishes HUNT customers from other buyers a seller may be considering. Click here to learn more: https://www.huntmortgage.com/pre-purchase-commitment-program/