Factors Considered in Pre-Approval for a Mortgage

When casually browsing listings on Zillow turns into scheduling tours with realtors, it is also time to make sure you are pre-approved for a mortgage. In some states, you can’t even buy a home without a pre-approval. In states that don’t require it, obtaining a pre-approval can put you ahead of the pack. A pre-approval will allow an individual to determine how much house they can afford to purchase. This allows buyers to start looking at homes that they can actually afford, rather than dreaming about a mansion that is completely unrealistic. In a mortgage inquiry, a lender will assess your current income and liabilities, as well as your credit score. They want to look for any red flags to determine how risky it would be to lend such a large amount of money in the form of a mortgage.

As soon as you start seriously thinking about buying a home, you may want to invest a few dollars into a service that informs you of your credit score and any changes that happen to it. Credit scores are a very important factor in getting pre-approved because they show the lender how many missed loan payments you have, how many credit cards you have in your name, and more.

Once you get pre-approved and find a house you’d like to buy, it is in your best interest to contact a real estate attorney who can guide you through the rest of the process.

Joseph Gachko, Esq. is an experienced New Jersey attorney who can assist you in any of your estate or real estate-related legal matters. If you require legal counsel for your real estate matters, please contact The Law Office of Joseph Gachko today to set up a consultation.