Friends told me the mortgage market is getting more and more competitive by the day. So why locked myself up by getting a pre-approval now. After all, it only takes days to complete the whole mortgage application process.
That said, I am a little hesitate to get a mortgage pre-approval before knowing exactly when will I buy a house … Lest I get locked up with a higher rate.
Why is a mortgage pre-approval important?
- It determines the maximum mortgage loan for which you qualify.
- It allows your realtor to show you a range of properties in your price range.
- It allows your realtor to make a realistic offer on your purchase, and saves time in the negotiation process.
- It holds the interest rate for a period of up to 120 days, guarding you against rate fluctuations.
- It provides peace of mind during the home buying process.
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