Although it seems as if snow is forever in our forecast, Spring is right around the corner. The combination of snow melting, sun shining, and families considering moving into their new home before the summer ends and back to school begins, makes this season the busiest time of year for the housing market.
Whether you are looking into purchasing your first home, or acquiring that second dream property, a wise first step in the home buying process is to obtain a mortgage pre-approval, but many home buyers don’t know exactly what that entails. The one thing you should know is that getting pre-qualified and pre-approved are two different processes.
A pre-qualification gives you a general idea of what you can afford based on your income and debts, while a pre-approval involves an in-depth review of your credit history and current financial situation. Because of this, a pre-approval is more likely to give you more accurate information about what you can afford. In some cases, pre-approvals can even secure a certain interest rate for you for up to 120 days.
Being proactive and working with a Mortgage Broker when looking for a home will streamline the process for you. Knowing what you can realistically afford is a great way to start house hunting with confidence and peace of mind!