by Chad Prescott 
As a buyer, receiving pre-approval for mortgage lending is one most important steps of the home-buying process. Understanding pre-approval and its importance will assist you greatly in purchasing a home.
Chad Prescott November 10, 2022
- What is Pre-Approval?
Pre-Approval is the evaluation of a potential borrower (you) by a lender to determine how much money you can borrow to purchase a home. Lenders check your credit score, assets, employment, and debt-to-income ratio, among other financial factors, to determine your pre-approval amount.
- Why should I get pre-approved?
Pre-approval allows you to identify your budget for identifying houses. In addition, it allows you more negotiating power by showing the seller you are a serious buyer.
- Do sellers want to know if I am pre-approved?
Sellers enjoy having the knowledge that their potential buyer will be able to receive lending to complete the home purchase. Pre-approval shortens the closing process because your financial information has already been collected.
- How do I get approved for the highest amount?
One of the best to get pre-approved for the highest amount is to have good credit, pay off debt, talk to multiple lenders, and make a larger down payment.
- How do I raise my credit?
Your credit is the most important aspect of receiving mortgage lending. You can raise credit by paying off your debts, making the minimum payment every month on credit card and loan payments, and lowering your credit utilization ratio.
