Find out how becoming preapproved allows you to house shop with confidence.
Before you apply for a loan, a lender can “prequalify” you. This means they estimate how much financing you could receive.
After you’ve filled out a loan application and the lender has analyzed your credit more thoroughly, they can provide you with a “preapproval” -- a written letter confirming the price of home you can purchase. Getting preapproved lets you and others see, in writing, that you qualify for a specific home loan amount. With your preapproval in hand, you’re ready to look for your new home. The lender will consider final approval of the loan later on in the process, after you’ve found the home you want to buy.
• Helps you narrow your search to properties in your price range
• Gives you confidence that you can secure a home loan for a specific amount
• Reassures home sellers that your offer is serious because your financing is already in place
• Helps speed the process of getting a mortgage loan once you’ve found a home to purchase
Click the Next button to learn more about how to buy a home.