{"id":50157,"date":"2021-05-18T17:35:23","date_gmt":"2021-05-19T00:35:23","guid":{"rendered":"https:\/\/www.movoto.com\/blog\/?p=50157"},"modified":"2022-04-19T22:52:11","modified_gmt":"2022-04-20T05:52:11","slug":"should-i-get-pre-approved-by-multiple-lenders","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/should-i-get-pre-approved-by-multiple-lenders\/","title":{"rendered":"Should I get preapproved by multiple lenders?"},"content":{"rendered":"

The simple answer to this question is: yes because it’s beneficial to you as a potential borrower to have different rates from different lenders competing for your business. But, why is it? Home buying can be a complicated endeavor, especially when you may be doing it for the first time. There are a lot of questions that you may not have even thought to ask before you decided to stop renting and look for a more permanent home. That is the easy part, you decided that your family needs more space or you need to move to a new area to pursue your career, but then comes the actual searching and buying processes.<\/span>
\nOne of the first things you will run into when trying to find a real estate agent to help you on your journey to your new home is a preapproval letter. If you did not know this was a thing or helpful in the journey, you’re not alone. Most of the time when buying a new home you will need to take out a mortgage<\/a> on the home, meaning you will need to borrow the money from a lender, which you will then pay back with interest. Everyone’s heard of a mortgage before, but a preapproval letter may not have been on top of your list of priorities.<\/span>
\nWhat a preapproval letter does is show real estate agents and sellers that your finances have been reviewed by a potential lender and you will be able to get a loan that will cover the price range of the home you are pursuing. In the quest for your dream home, you want to make sure there are no obstacles in the way of you locking your dream home down. A preapproval letter achieves this goal by showing a seller that you mean business and you can afford their home because you have a lender to back you up by stating they are willing to lend you the money in the future to cover the amount needed.<\/span><\/p>\n

What do I need for a Preapproval Letter?<\/h2>\n

Now, we know that we should have a preapproval letter<\/a>, but what do you need to get one? Lenders will have a mortgage application<\/a> that you will need to fill out, they will provide that. Some applications come with a fee, but that amount could potentially be deducted from the closing costs if you chose that lender. The potential lender will need you to provide the following to be evaluated:<\/span><\/p>\n