What is a mortgage pre-approval?

A mortgage pre-approval is an important step in the residential real estate law process in Alaska. It is when a bank or lender reviews and evaluates an individual’s financial information to determine how large of a mortgage loan they are likely be approved for. This process includes reviewing income, debt, and credit history to determine if an individual is likely to repay the loan. Once a lender has completed the review, they will provide an individual with a pre-approval certificate stating the mortgage amount they are qualified for. This certificate helps an individual narrow down the types of homes they can afford and increases their negotiating power when making an offer on a home. A pre-approval is an important step in residential real estate law and provides an individual with peace of mind when entering into a purchase agreement. It is important to note, however, that a pre-approval does not guarantee final loan approval until all of the requirements of the loan application have been met. Therefore, an individual should still proceed with caution when accepting a pre-approval offer.

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What is a mortgage pre-approval?

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