Upon the entering real estate market, the primary challenge may not be getting a mortgage. It may be securing a mortgage that is right for you with the best terms and cost. Pre-approval offers you an additional piece of information when getting ready to make a purchase offer on a residence. You already know what your income and expenses are, with pre-approval you now know what your interest rate and monthly mortgage payments could be as well.

Obtaining pre-approval for a mortgage loan means that a lender has assessed your credit standing and makes an assurance to supply you with a loan up to a specified amount.

Likewise, when actually wanting to make a purchase, buyers are usually required to apply and possibly secure financing within a set time period. This period could be as short as a week. By previously being pre-approved and knowing the lender you want to go with, you won't need to rush and possibly make a injudicious decision.

When acquiring pre-approval you will correspondingly receive a pre-approval letter. This can be disclosed to sellers when bidding on a property. It proves that you already have backing and the ability to go through with the sale, which makes you a much more attractive buyer to sellers.