If you’ve ever shopped for a house, or are thinking about doing that in the future, then chances are you have thought about mortgage pre-approval at one time or another. What is mortgage pre-approval? Why should you get pre-approved? Why is mortgage pre approval really necessary? Is it just something the banks cooked up to rope you in?
There was a time when I thought that pre-approval was something that banks thought up to get you in the door and then keep you there after they pull your credit report, and get you to bring in all of your verification documents. But now that I’ve shopped for and bought a house, I have had the time to research mortgage preapproval and understand the value and significance of it.
Why Get Pre-Approved?
There are several advantages to getting pre-approved for a mortgage. The first is that by getting your preapproval, you can focus only on houses that are within the range of what the bank will finance for you. Secondly, getting pre-approved gives you a leg up over other potential buyers who are not pre-approved. If