{"id":50365,"date":"2021-12-11T13:18:09","date_gmt":"2021-12-11T21:18:09","guid":{"rendered":"https:\/\/www.movoto.com\/blog\/?p=50365"},"modified":"2026-03-11T08:39:09","modified_gmt":"2026-03-11T15:39:09","slug":"first-time-homebuyer-mortgage-preapproval-tips","status":"publish","type":"post","link":"https:\/\/www.movoto.com\/blog\/first-time-homebuyer-mortgage-preapproval-tips\/","title":{"rendered":"7 mortgage preapproval tips for first-time homebuyers"},"content":{"rendered":"

There are a few things to consider before you buy your first home. You need to know your <\/span>budget<\/span><\/a>, whether you want a <\/span>condo, townhouse, or single-family home<\/span><\/a>, what <\/span>neighborhood<\/span><\/a> you want to live in, and your <\/span>must-have features<\/span><\/a>. But there\u2019s another critical step you need to take before you start looking in earnest. Once you\u2019re ready to start touring houses, you need to get <\/span>preapproved for a loan<\/span><\/a>.\u00a0<\/span>
\nThankfully, getting preapproved is a simple process\u2014one that you no longer have to make an in-person appointment to do. You can simply apply online with a bank and, once you provide the necessary information, you can get preapproved in minutes. Here are some important things to know about getting preapproved.<\/span><\/p>\n

1. It\u2019s Not the Same as Getting Prequalified<\/span><\/h3>\n

When you get <\/span>prequalified<\/span><\/a>, your lender will estimate how much you can borrow based on the financial information you supply to them. They can give you an idea of what kind of <\/span>mortgage<\/span><\/a> you can apply for, but they won\u2019t actually verify your information. A prequalification is less authoritative than a preapproval.<\/span>
\nWhen you get preapproved, the lender is verifying that they have done a preliminary assessment of your finances and are ready to give you a loan. You will still need to complete a mortgage application and the lender will do a more thorough audit of your finances when you officially apply for the loan. However, the preapproval letter says that once you submit the necessary documents and make an offer on a home\u2014barring any major issues\u2014your loan will be approved.<\/span><\/p>\n

2. Get Preapproved Right Away<\/span><\/h3>\n

If you\u2019re worried about just how much house you can afford, the banks won\u2019t beat around the bush in telling you that your aspirations are bigger than your finances. Preapproval takes the <\/span>budgeting<\/span><\/a> guesswork out of searching for homes since you\u2019ll learn the actual amount you can borrow. Not to mention that most sellers won\u2019t even consider your offer without one. Which brings us to…<\/span><\/p>\n

3. Home Sellers Expect It<\/span><\/h3>\n

\"7<\/span>
\nMany sellers won\u2019t take you seriously without a preapproval letter. In particularly competitive markets, <\/span>agents<\/span><\/a> won\u2019t even work with you or show you homes if you\u2019re not preapproved. So, once you\u2019re ready to start looking, and especially when you want to put in an offer, you need to get preapproved first.<\/span><\/p>\n

4. Check Your Credit<\/span><\/h3>\n

You\u2019ll need to provide this information to your lender, so it\u2019s a good idea to check your <\/span>credit score<\/span><\/a> and report prior to applying for preapproval. Your credit score will help your lender determine what types of loans are available to you and more accurately <\/span>quote a rate<\/span><\/a>. You can receive your credit report for free and it will not affect your credit score. Once the bank does a credit inquiry, it will lower your score by a few points. However, multiple inquiries from several banks within a short span of time will not ding your credit, so don\u2019t be afraid to shop around for mortgages either.\u00a0<\/span><\/p>\n

5. Gather Necessary Financial Information<\/span><\/h3>\n

\"7
\nThere are quite a few documents you\u2019re going to have to provide to receive a preapproval letter. Be prepared by having these documents ready:<\/span><\/p>\n