Hunting for a house takes time. When you find that special home you want to be prepared. Loan pre-approval could make the difference, especially with multiple offers.
What happens after pre-approval? Don’t open or close any accounts during that time, or take out credit for any other large purchases. Ask how long the pre-approval will be valid. Typically, it’s for 60 – 90 days and can be updated as needed.
Don’t forget lender fees and closing costs. They include origination fees, the cost of writing the loan and prorated items like property taxes.
Shop around for your home loan and interview lenders. Researchers found that a borrower taking out a 30-year fixed rate conventional loan could get rates that vary by more than half a percent. That could translate into saving thousands on your mortgage. Happy house hunting.