Do you understand what pre-approval means when you are shopping for your mortgage? Your lender is going to give you a pre-approval amount based on the documents you submit that support your income.
This pre-approval will give you a limit on what you’re pre-approved to purchase up to when buying a home. Let’s talk more about what goes into your pre-approval in this video, “Do You Understand What Pre-Approval Means?”:
What Does Pre-Approval Mean for a Home Loan?
So what does getting pre-approved for a home mean? Shop around for your mortgage so you can find the best offer for you. When you get pre-approved for a mortgage, your pre-approval is based on the documents that you provide to your lender (or lenders if you’re shopping around for the best rates).
The documents that you’ll submit to a lender to get pre-approved usually include your income, any outstanding bills that you might have, or any outstanding credit you have. (although documentation does vary depending on the lender). The lender will turn around and give you a pre-approval amount based on what you are approved to purchase up to. This limit will be the maximum amount that you should look at homes for, don’t look at homes over your limit!
The pre-approval sheet that your lender will provide you is a net sheet. This net sheet shows all of your expenses for purchasing a home, including the cash that you will need to bring to the table when you close on the home. You may not understand all of the numbers on this net sheet, and that’s okay! It’s always a great idea to talk to your lender before you write an offer on a home so that you understand exactly how much money you need to bring to the table, which will include your closing costs along with your down payment.
Whew, that’s a lot! Wondering why it’s so important to get pre-approved before you start looking for homes? Read this blog for some additional information on “Why Should You Get Pre-Approved?”.
More Common Questions about Buying A Home
As you probably already know there is a lot to the homebuying process. If you have more questions about buying or building a house, don’t worry! We have a list of common questions that homebuyers have HERE.
If you don’t see your question on this list, then please reach out! I would love to answer all of your buying questions.
Want more information? Download my Homebuyers Guide: Homebuyers Guide
If you’re a first time home buyer, download this Buyers Guide: First Time Homebuyers Guide
Do You Have More Questions About Buying a House in Birmingham, AL?
Now you know what getting pre-approved for a home means! It’s so important to get pre-approved before you start looking at houses.There’s a lot to the homebuying process, so make it easier on yourself and have an expert real estate agent guide you through the process. If you’re looking to buy or build a home in the Greater Birmingham, Alabama area, let me help you. If you’re new to the Birmingham area or looking to relocate to Birmingham, Alabama, please feel reach out to Dianna Howell with The Howell Group: 205-568-5435 or dianna.howell@kw.com
For information on Pelham, Alabama or Birmingham in general, contact real estate agent Dianna Howell, a top buyers agent in the Birmingham, Alabama area.
Visit our website for more information on the Birmingham area: https://diannahowellrealtor.com/category/lifestyle/
🔑🏡 Want to learn more about the buying process? Then read this article for 6️⃣ easy tips: Six tips to Buying a Home
📕 Read more about the Birmingham area in this post: Relocating to Birmingham, Alabama
I have plenty of resources and information to provide including my expert help. Call me today and let’s get started on the search for your new home, whether you want to buy or build!
Sincerely,
Dianna Howell
The Howell Group of Keller Williams in the Birmingham Alabama area
Top Birmingham Real Estate Agent
