Preapproval is as close as you can get to confirming your creditworthiness without having a purchase contract in place. A pre-qualification is a good indication of creditworthiness and the ability to borrow, but a pre-approval is the definitive Proof of Funds (POF). The borrower will complete an official mortgage application and we will verify the information you provide as well as supply us with all the necessary documentation to perform an extensive credit and financial background check, to be pre-approved. We’ll also perform a credit check. If you’re preapproved, we will offer pre-approval up to a specified amount and you’ll receive a preapproval letter, which is an offer (but not a commitment) to lend you a specific amount, good for 90 days.
Lenders look at every detail of your finances when granting preapproval. You might be asked about a car loan payment you made with a loan, for example. Be prepared to answer lender questions as soon as they come up. If you see yourself as qualified to buy a home, now is the time to get a personalized quote to purchase a new home. Lock in your rate today. Unlike prequalification, preapproval is a more specific estimate of what you could borrow from your lender and requires documents such as your SSNIT Statement, recent payslips.
Getting preapproved is a smart step to take when you are ready to put in an offer on a home. It shows sellers that you’re a serious homebuyer and that you can secure a mortgage – which makes it more likely that you’ll complete your purchase of the home, and not waste their time. Going through the pre-approval process also offers a better idea of the interest rate to be charged. We allow borrowers to lock in an interest rate and/or charge an application fee to cover third-party fees, for pre-approval.
We will provide a conditional commitment in writing for an exact loan amount, allowing borrowers to look for homes at or below that price level. This puts borrowers at an advantage when dealing with a seller because they're one step closer to getting an actual mortgage. It's advisable that you don't have to shop at the top of your price range. Depending on the market, you might be able to get into a home you like for less money than you’re approved for, leaving you with extra cash each month to set aside for retirement, kids’ education funds, or checking something off your bucket list.
Determine your affordable price range
Knowing the range of affordability greatly aides your new home search.
Secure the best loan
Get a low monthly payment and secure a rate that won’t change for the life of your loan.
Makes your offer more attractive
Sellers know that a mortgage pre-qualification means the buyer is ready to buy.
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