Mortgage Pre-Approval

f you are new to choosing a mortgage then you are probably already aware of the minefield of mortgage options being offered on the market. To add to that, there are many choices that a mortgage borrower can make to decide on the most suitable mortgage for themselves. One such choice is to decide whether you should get a mortgage pre-approval and establish eligibility.

Established eligibility, pre-approved mortgage, what is the difference?


When your mortgage eligibility is established, the lender will simply give a general idea of the amount of funding you might get to buy a house. When you get pre-approved mortgage, the lender has actually committed (subject to certain conditions) to lend you money. The pre-approval should be your first stop when you are seriously looking to buy a house.

Why get a pre-approved mortgage?

Getting a mortgage pre-approval allows you to find and research the house of your dreams easier if you have a mortgage pre-approved, you have many of the following benefits to enjoy:


You save time because you will only search and view the properties that you can afford;
you manage your money better, since you know the amount of your monthly payment and your required down payment;
property agents will generally offer you a better and a more serious service because they know that you are a serious buyer and ready to move to buy a property because you have a pre-approval;
when you make an offer to purchase a property, the seller is more likely to seriously consider your offer because he/ she knows that your financial situation is well established;
Your mortgage pre-approval increases your bargaining power with the seller;
Your mortgage rate will be protected against any increase for 90 days, if you choose a fixed rate term (and your rate will decrease if rates go down);

you pay no fees and you are not obliged to accept the mortgage that has been offered to you by the lender;
Better still; some lenders will give you an answer within 48 hours of receipt of your application for mortgage pre-approval. You can even make your application online now.

If you would like to learn more about commercial mortgage or other residential mortgages then you can visit the buy to let mortgage site.

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