Get Mortgage Pre-Approval Before Buying a Home in Shadyside

Get Mortgage Pre-Approval Before Buying a Home in Shadyside

Shadyside is one of the most desirable neighbors for prospective homebuyers in the Pittsburgh area. But before you begin hunting for homes in Shadyside, it is important to know how much you can afford by obtaining a mortgage pre-approval.

Pre Approval vs Pre Qualification

Many prospective homebuyers confuse pre-approval with pre-qualification. These terms are not one in the same, and it is important to know the difference between the two.

Pre-qualification requires only your most basic information as a quick snapshot of your financial situation to give you an idea of what you might be able to afford. It is an educated, yet unofficial estimate that requires no verification. In fact, it can even be done in minutes online.

Although pre-qualification can give you an idea of what you can afford, it should only be done in the most preliminary stages of house-hunting. Serious homebuyers should obtain an official mortgage pre-approval, which is preferred in today’s housing market. Real estate agents are more willing to work with prospective buyers who are pre-approved, and sellers are more likely to accept an offer made on their home from a pre-approved buyer.

During the pre-approval process, a lender will review your finances and credit to determine how much they can lend you based on this information. The lender will look at your credit score and debt-to-income ratio, and they require official documentation such as bank statements, pay stubs and tax returns. Unlike pre-qualification, mortgage pre-approval requires actual verification of your finances and credit. Once you have your mortgage pre approval Pittsburgh real estate agents and sellers will take you more seriously as a prospective home buyer.

Know What You Can Afford Before you Buy

Don’t waste time looking at homes in a certain price range only to learn that you are not approved for that amount.

Take steps now to know exactly how much you can afford before you begin house-hunting. Getting pre-approved not only lets you know how much you can afford, but also gives you time to get your finances in order or fix or prevent issues that might get in your way. By obtaining an official mortgage pre approval Shadyside home ownership can become a reality.

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