A pre-approval gives you multiple advantages. A mortgage pre-approval demonstrates that you are a serious buyer to the sellers and listing agent and may provide you a competitive edge in a multiple offer situation. This infographic walks you through the factors that impact pre-approval as well as the many benefits of being pre-approved.
Factors That May Impact Pre-Approval
Having a credible and stable income is key. An unstable income could be a red flag that you cannot handle the financial requirements of taking on a mortgage loan.
Your credit history and score can play an important role in the pre-approval process. Lenders will look into your credit and payment history, see if you are paying pills on time, check on what type of credit lines you have had open, and even evaluate the length of time you’ve had credit lines open.
Your assets and liabilities will be noted during the process as well. This will help evaluate your overall financial wellness.
Having substantial debt or recently taking on new debt could impact the process. Lenders will evaluate your debt to income ratio and check that you will be able to repay your mortgage loan in addition to other outstanding debts you may owe.
Your employment history will also be evaluated upon pre-approval. It is important to have a stable and credible income and represent stable employment. Essentially, lenders want to make sure you can take on a new mortgage and payments that will be required.
Pre-Approval Advantages + Benefits
- Helps Determine Your Budget
- Makes You an Attractive Buyer
- Saves Valuable Time
Buying a house should be fun! Don’t wait, contact the Priority Mortgage team today to secure pre-approval for your loan.