Most people buying a home need a mortgage. Too often, in the past, arranging a mortgage was left to the very end, sometimes even after a house was bought, forcing borrowers to scramble for financing.
How things have changed! Today it’s important to shop for a mortgage before you purchase a home, since most lenders will “pre-approve” buyers for a mortgage. Some lenders will even do it over the phone or on the Internet.
It’s a no-cost, no-obligation deal that lets you know before you go house hunting or sign an offer to purchase, how much you can afford to buy based on how much you can afford to borrow.
When getting pre-approved for a mortgage, see how long the rate commitment is good for; it differs from lender to lender.
With a pre-approved mortgage, you can confidently negotiate the purchase of a home, knowing the mortgage financing is arranged, subject to final property appraisal and a formal credit review.