If you're house, condo or co-op hunting in Kew Gardens, you're probably beside yourself with excitement! It's tempting to dive in and start shopping without considering your finances. This "shop now, budget later" mentality can lead to frustration and disappointment if you set your sights on a home that you ultimately can't afford.
Cue the mortgage preapproval! If you want the best shot at owning a prime piece of Kew Gardens real estate, you'll need one of these in hand before you start shopping.
If this realization sends you into a tailspin, don't fret! We're going to take a few minutes to tell you all about mortgage preapprovals and why they're important.
What is a mortgage preapproval?
A mortgage preapproval is a written notice from a financial institution stating how much money they would lend you to purchase a piece of Kew Gardens real estate. The lender analyzes your financial history and credit score to arrive at this figure.
I'm prequalified for a mortgage. Is that good enough?
A mortgage prequalification and preapproval are not the same thing. A prequalification estimates how much money you might be able to borrow based on a minimal amount of information that you provide. A preapproval requires you to complete an application package that requests specific financial information. The lender will also pull your credit score.
Will a mortgage preapproval hurt my credit score?
When a lender pulls your credit report for a mortgage preapproval, it typically doesn't hurt your score. If you get prequalified by multiple lenders, try to do so within a short period of time. Thirty days is ideal.
Does my mortgage preapproval expire?
Mortgage preapprovals are typically valid for 90 days. This time frame can fly by, so start browsing Kew Gardens real estate immediately after you receive your preapproval letter. If you don't find your dream home before the preapproval expires, you can always go through a renewal process.
Start your Kew Gardens real estate search on the right foot with a mortgage preapproval. Contact Kew Gardens Realty today to get started!