What is a Pre-approval?
A pre-approval is issued after the lender has reviewed all the necessary documents and analyzed borrowers’ credit report, specifying a loan amount that they are willing to lend to the borrowers.
In this competitive market, a pre-approval is crucial for a buyer’s offer. Not only does it increase the seller’s confidence in buyer’s buying power but it also speeds up the loan process later on after the offer has been accepted.
These are the 4 reasons why you should get pre-approved prior to starting your home search.