What is a Pre-Approval?
Ryan Ward, Mortgage Banker, gives his explanation of a Pre-Approval and why it is so important in today's real estate market.
When a potential home buyer gets pre-approved it means they have received a loan commitment from their mortgage company before making and offer on a property, based on review of credit and finances. Having a credit pre-approval shows sellers that the buyer is financially qualified along with helping the buyer establish a clear price range. The process is the same as a typical mortgage application, except that your application doesn’t include property information.