What is a mortgage pre-approval?

A mortgage pre-approval is a process that occurs before a homebuyer applies for a mortgage loan. During a mortgage pre-approval, a homebuyer is required to provide a lender with financial and personal information, which is then used to determine the maximum loan amount a buyer is able to take out. This helps to ensure that the homebuyer is able to purchase the property and not be burdened with an excessive debt load. In North Carolina, mortgage pre-approval typically requires the completion of a loan application and the submission of documents to verify a consumer’s financial information. This includes evidence of income, financial assets, employment history, and any current debts. All of this information is used to assess the buyer’s creditworthiness and determine how much money the lender is willing to lend. To get a mortgage pre-approval, home buyers should have their financial documents, including income tax returns, bank statements, and credit reports, readily available. Additionally, buyers should obtain proof of employment, such as a letter of employment or pay stubs, and proof of any other income received. With this information in hand, buyers can make sure that they are able to shop for the right home with confidence.

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What is a mortgage pre-approval?

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