Getting Pre-Approved for your mortgage in Wichita
When you thinking about looking for a new home, the first step is always to talk to a qualified lender about loan options. I have worked with some amazing lenders over the years, and can offer some excellent local referrals. I recommend working with a local bank, as I have run into problems over the years with using large out of state lenders.
So what is Mortgage pre-approval? It is essentially a promise from your lender that you are qualified to borrow up to a certain amount of money, at a specific interest rate. Pre-approval however, is contingent on property appraisal and other requirements like providing the bank with income records, credit reports, and tax returns.
Here are some of the advantages to getting pre-approved:
Sellers prefer pre-qualified buyers
In today's competitive housing market, you may have to compete against other buyers to get the home you want. A buyer that is pre-qualified is taken more seriously because they can prove that they are able to close the deal.
pre-approval lets you know what price range to look in
Your lender will tell you what price range of mortgage you will be able to qualify for. This will help me to know what price range to set your home search in, and what price range you can afford. It is helpful to know what you can afford, and what you payment will be before you start looking for a home.
Pre-approval speeds the application process
If you are pre-approved with a bank, your application process will be much smoother once you do put an offer in on a house.