If you’re thinking about buying a home soon, you should start shopping around early with different mortgage lenders so you can find the best loan for you. You’re also going to want to get pre-approved.
When you get pre-approved, you give a lender your financial details, and the lender reviews them to determine if you’ll likely qualify for a home loan. While pre-approval isn’t an ironclad guarantee that you’ll get your loan, it does mean you’re more likely to secure financing, provided your circumstances don’t change.
It can take time and effort to get pre-approved for a mortgage, but it’s worth doing before you start going to open houses or scheduling home showings. Let’s look at three big reasons why you should get pre-approved before beginning the home-buying process.
1. You’ll know how much your loan will cost
When you get pre-approved, your lender typically tells you what loan interest rate you can qualify for. Depending on your circumstances, you may actually be able to lock in that rate so you’ll know exactly what you’ll pay for your home loan.
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If you know upfront how expensive your mortgage loan is going to be, then there will be no surprises when it comes time to actually purchase your home. You can make absolutely sure that the amount you’re planning to borrow will fit…
