Hello! Welcome to our new web series “CU Walk the Money Talk” where the credit union’s very own, Ashley Scroggins and Lori Hudson discuss personal finance topics that make it easier to digest (and yes fun!). We hope you enjoy our series and make sure to subscribe to get updates when new videos are posted. Enjoy!
When you are pre-approved for a mortgage, it means that a lender has determined how much you can borrow, the loan programs that you may qualify for, as well as the interest rate you qualify for. This assessment is based off of details such as your credit score, income, debts, and employment history. You’ll generally get a written statement from a lender stating this information, which can be used to give sellers confidence that you’ll be approved for a loan after they accept your offer. Most pre-approval letters are good for 60 to 90 days. Watch Ashley and Lori dig deeper into how you can benefit from a mortgage pre-approval in the latest episode of “CU Walk the Money Talk.”
There are many reasons why you should get pre-approved before the house hunting even begins. The most important reason is that you will get an accurate idea of how much home you can afford. This can help to target your home search and ensure you only look at houses that are truly in your price range. A pre-approval letter also helps you prove to real estate agents and sellers that you’re a credible buyer and able to act fast when you find the home you want to buy.
Some sellers might even require buyers to submit the pre-approval letter with their offers, though having a pre-approval letter does not guarantee that your offer will be accepted by a seller. A pre-approval letter can make you stand out in a competitive real estate market. If you make an offer on a house without a pre-approval, your offer may not be taken as seriously as an offer from another person with a pre-approval.
Ready to get started?
The West Community mortgage team has the expertise and money to make your vision of home ownership a reality. We’ll listen to you, understand what you’re looking for, and find the perfect mortgage* solution for you. Contact our Mortgage team at 636.720.2495 for more detailed information about our mortgage solutions or get pre-approved now.