What is a mortgage pre-approval?

Mortgage pre-approval is a process offered by residential real estate lenders in California that gives potential home buyers an estimate of how much of a loan they can qualify for and what interest rate they can expect. During the pre-approval process, lenders will take into account a person’s credit score, income and financial history to determine what kind of loan they can approve, as well as the amount of the loan and the interest rate the lender will offer. With a pre-approval, the lender can assure that the borrower is eligible for the loan, which can be very helpful in the home-buying process. Having a pre-approval letter from a lender can help potential homeowners when they are searching for a property. It shows sellers that the buyer is serious and can afford the home they want, making them more likely to accept the offer. It also sets the terms of the loan, which makes the process of buying the home much easier. In California, borrowers can get a mortgage pre-approval from a variety of lenders. It is important to shop around and compare interest rates before settling on a lender, as these rates can vary greatly. It is also important to note that pre-approval does not guarantee that a loan will be approved, and that the amount of the loan may change during the full loan process.

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What is a mortgage pre-approval?

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