Get preapproved for a mortgage! Serious about homebuying? Getting preapproved with Fidelity Home Group may be your next step. Just know it involves some paperwork and adds a hard inquiry to your credit report.
A preapproval letter provides documentation of exactly how much mortgage you have been approved to borrow. And this documented evidence shows both Realtors and sellers that you are serious in your pursuit of a property. A preapproval letter can make a big difference for homebuyers.
Here are the items typically included in a preapproval letter:
An important aspect to all preapproval letters is that a preapproval letter doesn’t guarantee a home loan. The items specified in your preapproval can change for several reasons, including: your financial situation changes (you incur more debt, lost your job, etc.), the appraisal comes in lower than estimated, there was an issue with the title search on the property.
A mortgage pre-approval, on the other hand, actually has legs. It’s a written, conditional commitment from a bank or mortgage lender that says you are pre-approved for the mortgage financing in question.
It comes only after filling out a loan application, supplying verified income, asset, and employment documentation (assuming these items are necessary), running credit, and underwriting the loan file based on current mortgage rates.