Why you should get preapproved before searching for a new home

When you’re in the market to buy a house, getting preapproved means that a lender has reviewed your credit history, income, and other financial details and has determined the maximum amount they would be willing to lend you to buy a home. This process involves submitting an application and supporting documents to the lender, such as pay stubs, tax returns, and bank statements.

Being preapproved for a mortgage gives you an idea of how much you can afford to spend on a home, and it also shows sellers that you are a serious and qualified buyer. Having a preapproval letter from a lender can give you an edge over other buyers who have not yet been preapproved, as it shows the seller that you are financially able to purchase the property.

It’s important to note that getting preapproved is not the same as getting approved for a mortgage. After you have made an offer on a home and it has been accepted, the lender will review your application and documents again to make sure that you still meet their lending criteria.