What does it mean to be pre-approved, and why should I be pre-approved before I start looking at homes to buy? Pre-approval is a free service from most Residential Lenders that provide certainty regarding which homes are or are not in your budget.
Pre-approval is the process of applying for a loan without having to pay any money. It helps potential home-buyers see what loan products are available to fit their needs, determine their maximum budget, and make sure monthly mortgage payments fit within their budget. Most importantly, it ensures that buyers meet the Lending stipulations set out in the future Purchase Contract and close on their new home in timely manner. The best part of Pre-Approval? It's free!