What is a pre-approved mortgage?
A pre-approved mortgage provides an interest rate guarantee from a lender for a specified period of time, and for a set amount of money. This time frame is usually 60 to 120 days. The pre-approval is calculated based on information provided by purchaser(s) and may be subject to certain conditions being met before the mortgage is finalized. Conditions would usually be things like ‘written employment and income confirmation’ and/or ‘down payment’.
Most successful real estate professionals will want to ensure you have a pre-approved mortgage in place before they take you out looking for a home. This is to ensure that they are showing you property within your affordable price range. A pre-approved mortgage is one of the first steps a home buyer should take before beginning the buying process.