7 Solid reasons why you should get pre-approved for mortgage

Thinking of buying a house? Getting pre-approved for mortgage is what you should do first.

Here are seven solid reasons why you should get pre-approved for mortgage:

  1. Peace of mind. Knowing that you qualify for mortgage.
  2. Knowing how much you qualify for – and on what conditions, if any.
  3. When you are not limited by “Conditions expiry time”, you can shop around, compare and find the deal that suits you the best.
  4. Lock in your interest rate – so, you don’t pay a higher interest rate even if the interest rates go high. Most banks/financial institutes generally lock in your rates for 120 days.
  5. Be ready to make an offer without delay when you find the property you like.
  6. Many sellers prefer to work with pre-approved buyers.
  7. Gives you an advantage specially in multiple offer situation.

And the two best things about getting pre-approved are – one, it costs you nothing and two, pre-approvals are no-obligations to you.

In other words, while the lenders commit to lock-in your interest rates and commit to offer you the loan (subject to the condition mentioned in the approval letter), you are NOT obliged to go with it – unless and until you sign a commitment letter.


Disclaimer: The information provided in this blog is current or correct to best of my knowledge. However, it is not a professional or legal advice or a substitute for a professional or legal advice. Readers of my blog are advised to seek professional advice before relying or acting upon the information published here. 

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