Why a Mortgage Preapproval Matters so Much in 2024

Why a Mortgage Preapproval Matters So Much in 2024

With mortgage rates so hard to predict and homebuying decisions moving so quickly, knowing how much house you can afford to buy in this competitive real estate market is critical.

Why do you need a mortgage preapproval?

Understanding how much money a mortgage lender will let you borrow, how much money you are comfortable borrowing (often different numbers!), and at what interest rate will give you the information you need to shop for homes more confidently and successfully. In addition to information, preapprovals are essential because sellers won’t consider your offer to buy unless a preapproval letter is attached to the offer.

What is a mortgage preapproval?

The mortgage preapproval is when we review your income, employment, credit, and assets. You will be asked to provide documentation such as paystubs, W-2s, and bank statements. Getting preapproved only takes 24 hours and is good for 120 days. After 120 days, you don’t have to go through the entire process again; we just update your information.

Our Seminars

At RMC, in addition to providing numbers, we also do a mini homebuying seminar with our preapproval meetings. I share what to expect when you find a house you love, from earnest money deposit to contract contingencies. Even if this is not your first homebuying experience, so much has changed that everyone finds this educational piece helpful. Plus, all of this is free! Please contact me if you are ready to consider buying a home.

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