MORTGAGE PRE-APPROVAL
Getting preapproved for a mortgage is one of the first steps in your homebuying journey. This process helps you determine your budget and demonstrates to sellers that you're serious about buying, which is crucial in a competitive real estate market.
Preapproval is the closest you can get to confirming your creditworthiness without a purchase contract in place. You'll complete a mortgage application, and the lender will verify your information (income and assets) and perform a credit check. Upon preapproval, you'll receive a preapproval letter, an offer (but not a commitment) to lend a specific amount, typically valid for 60 to 90 days.
A mortgage preapproval generally lasts for 60 to 90 days, given that your income, credit history, and interest rate could change. A preapproval usually entails a soft inquiry, so it doesn't directly impact your credit.
You can secure multiple preapprovals from different mortgage lenders at once, a strategy often employed by savvy first-time home buyers and real estate investors.