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What Is The Pre-Approval Of A Mortgage
When you begin shopping for a mortgage deal with a company like VSMA, you may come across something called a pre-approval. You may not have heard this term before or know what it can do to help you. It can be a benefit for many people searching for a mortgage - and if you continue reading, you will find out why.
Not only will you save yourself time, you'll also be able to see what kind of properties you can get, too. A pre-approval can help you out quite a bit, so you shouldn't just overlook it as another complicated part of the mortgage process.
What is a pre-approval?
Certain financial planners and lenders will evaluate your finances and run your credit score as a preliminary check before they offer you a mortgage. Why do they do this? Well, believe it or not, it's one of the most accurate ways to tell what you'll be able to afford if you decide to buy.
Plus, it can show you what deals you won't be likely to get and also which ones you are likely to get. And, as you can probably imagine, this can benefit both first time buyers as well as others hoping to buy a new property.
From this, a likely mortgage deal can be calculated and passed on to the potential buyer, to give them a rough idea of their options.
What are the benefits of a pre-approval?
With the ability to see whether or not you're likely to be able to get certain deals, you can do so much! It's almost like a super power that allows you to see into the future. It can save you loads of time, because instead of finding a deal and waiting to see if you will be accepted, you can use the pre-approval to gain an idea whether your loan will be approved – and for how much.
It can make the mortgage process easier and quicker, and who wouldn't want that?
What you need
Although it's great, there are some requirements that are needed for a pre-approval. A lender will need your social security number, proof of your finances and also permission to inquire about your credit report.
This may not be an issue for some people, but it may be for others. However, a lender will need these things to see your chances of acceptance and it's likely that they'll be needed further on in the process, too. So, if you think that it's an issue, you should remember that it's likely that this information (and more) will be needed at some point during the mortgage process either way.
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