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5 Things you should know about your Mortgage Pre-Approval

Mortgage Preapproval

Many potential home buyers don’t realize that it is actually required of them to obtain mortgage pre-approval before putting in an offer on a home. Although many people are aware of what this document is, there are a few important aspects pertaining to it that need to be taken into consideration.

They Don’t Come with the Best Rates

As few as one out of every six pre-approved home buyers end up taking the mortgage that they received the initial pre-approval for. However, the lender still has costs that to cover that are associated with the processing of this document, and these do need to be recovered somehow. As a result, the interest rates quoted on pre-approval documents can end up being as much as 0.2% higher than current market rates – which can make a substantial difference in the long term. read more

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