Preapproval Services

Preapproval services refer to the process where a lender preliminarily assesses a potential borrowers financial status to determine how much they may be eligible to borrow before they apply for a loan. This helps give borrowers an idea of their borrowing power and can make them more attractive to sellers.

Obtaining preapproval gives you an advantage when house hunting, as it shows sellers that youre serious about buying and financially capable of purchasing their home. It also helps you identify any potential issues with your credit or finances that could prevent you from securing a mortgage.

The time frame varies by lender, but generally, preapprovals can be issued within 24-48 hours if all necessary documents have been submitted. You will typically need proof of income (such as pay stubs or tax returns), recent bank statements, identification, and information on any debts you have.

Some lenders charge for this service while others offer it free of charge. Its important to check with your chosen lender about any costs upfront so there are no surprises down the line.