Yes, it is smart to secure a pre-approval letter from a lender before house hunting. A pre-approval letter is a document from a lender that states how much money you qualify to borrow for a mortgage. This letter shows sellers that you are serious about buying a home and that you have been pre-approved for a loan. It can also help you negotiate a better price on a home. Here are some of the benefits of getting a pre-approval letter before house hunting:
A pre-approval letter typically lasts for 60 to 90 days. However, it is important to note that your financial situation can change during this time. If your income or debt changes significantly, you may need to get a new pre-approval letter. To get a pre-approval letter, you will need to provide the lender with some information about your financial situation, such as your income, debt, assets, and credit score. The lender will then review your information and determine how much money you qualify to borrow. Once you have a pre-approval letter, you can start house hunting. When you find a home that you want to make an offer on, you will need to provide your pre-approval letter to your real estate agent. Your agent will include the pre-approval letter in your offer, which will show the seller that you are serious about buying the home. Getting a pre-approval letter is an important step in the home buying process. It can help you find the right home, negotiate a better price, and speed up the process. If you are serious about buying a home, I recommend getting a pre-approval letter before you start house hunting.