The Pre-Approval process involves you speaking with a Mortgage Lender about your financial situation, what you'd like to accomplish, and any concerns you have. Armed with that information, a Mortgage Lender can obtain an approval from a lender up to a specified loan amount and provide you with monthly payment information and closing cost information.

There are many benefits to getting Pre-Approved. First, Realtors will spend more time assisting you with your home search if they are confident you’ll be able to obtain financing once you’ve located a home you’re interested in purchasing. Second, Seller’s will take your offer more seriously since they know you will be approved for a mortgage -- and they won’t risk taking their home off market only to find out deal is going to fall through 30 days later. Finally, since you know you’ve been approved and much of paperwork has already been processed, you’re in for a much less stressful experience.

Why is it important to do this as early as possible?

Many loan officers report that over 50% of credit reports they see have inaccurate information listed. This inaccurate information could be difference between you getting a loan or not getting a loan - getting a rate of 5% or getting a rate of 7.0%. The earlier these errors are found, sooner they can be corrected.