Get Pre-Approved for a Mortgage in Michigan
A house hunt is exhausting and demanding. Visiting multiple homes and finally selecting one can be a chore. The truth is though, many people put the cart before the horse and begin house hunting before being per-approved for financing. Keep in mind obtaining a pre-approval for a mortgage will not only save you time, but also put you in a stronger position when buying the house. Many people question the importance and need to do so and this article will guide you on this vital step.
The Importance of a Pre-Approval of a Mortgage
First and foremost, a pre-approval of the mortgage helps people determine if they are totally sure of being able to afford a house.Secondly, one gains more time for the often bumpy loan process. If you wait to get an approval until after you have an accepted offer on a home, you’ll be rushed and may have to fulfill your financing conditions within a short window, maybe as little as one week. Thus it always advisable to get the initial process started up front too avoid complications and ensure a smooth sailing home buying process.
The Difference between Pre-Qualifying and Full Approval
Many people often get confused between these two terms. They think that Pre-Approval (Pre-Qualifying)and Full Approval of the mortgage are one and the same, which is far from the truth. Pre-Qualifying for a mortgage is a process done only on the basis of what the client reveals to its loan officer about various financial aspects such as their earnings, credit score, total assets, the amount available for a down payment, etc. This documentation is not reviewed by and underwriter during the pre-approval process like it is later when full approvals are given. It is important to understand that although a pre-approval is a step in the right direction, it is just a step and is not a guarantee of funding.