To get Preapproval or to not get Preapproval
If you’re thinking about buying a new house, getting your mortgage preapproval upfront brings many benefits. In today’s fast real estate market, getting preapproved is a must if you want to beat other rival buyers.
Today, we’ll cover a few key questions about preapprovals. Before long, you’ll be in the market, on the hunt, and narrowing in on your next home.
When is the best time to get preapproved for a home loan?
As soon as you’re serious about buying a new home, it’s time to get preapproved. Getting pre-approved for your home loan before you begin the house hunt will:
- Inform you on exactly how much house you can afford
- Provide assurance that you’re able to obtain a loan
- Prove your creditworthiness to sellers
- Allow a faster closing
- Move you one step closer to homeownership
How long will my preapproval letter be valid?
Mortgage preapproval letters will usually stay valid for months. Sometimes it’s as little as 30 days, although typically you have 90 days before needing to reapply.
How long does it take to receive your preapproval letter?
Typically, it only takes a few days to generate a preapproval letter. However, the process can take as long as two weeks in some cases. Self-employment, limited credit history, and questions from the letter can slow down this process. Check out this list of things you should have prepared in order to apply for preapproval.
Will getting preapproved hurt your credit score?
When you apply for preapproval, you give the lender permission to review your credit report and obtain your credit scores. This causes a hard inquiry to appear on your credit report, which can cause your credit scores to dip. This reduction in credit score is usually small and temporary, especially if your credit history is otherwise strong.
Can you look at a house without being preapproved?
While it’s not necessary to have a mortgage preapproval letter to look at a home for sale, it’s not recommended if you’re looking to buy. In today’s competitive market, the home will likely be under contract by the time you do get preapproved. Instead, apply for your preapproval before you begin looking for a home so you can make an offer before it’s gone.
What are the advantages of getting preapproved upfront?
Having your preapproval letter will help you narrow in on homes within your price range. It also communicates to the sellers that you’re a reliable and low-risk home buyer. People with preapprovals often lock down showings faster. They’re also prepared to make an offer immediately when they come across a home they love.
Looking for Your Dream Home That Fits Within your qualification?
If you’re looking to buy or sell in Lancaster County, don’t hesitate to reach out to your friends here at the Niv Lemoine Real Estate Group. We match people like you with their perfect home in their price range, and we would love to help.