Pre-Approval for a Mortgage

What Is Pre-Approval for a Mortgage

The prospect of buying a house can be fraught with questions, stress, and doubt. The most troubling aspect of this type of investment is whether or not you can afford it. The likelihood of your dream home slipping through your fingers hinges on whether or not you have the right budget. When it comes down to it, you have to consider if you can afford to purchase a home and comfortably pay the mortgage. This often results in a dangerous guessing game.

You can, of course, use the wealth of online calculators that make dramatic claims of being able to tell you exactly what you can afford. Unfortunately, you have no guarantee the figure you are given is a true reflection of what you will qualify for in the real world. That figure you see online may not fly when you have other bills and living expenses entered into the equation.

A pre-approval letter from a mortgage lender, on the other hand, is much more accurate and will help you work out your overall budget. When it comes to an investment as important as buying a home, you deserve information that allows you to plan for a comfortable and affordable future.

The Pre-Approval Process

The pre-approval process with Galaxy Lending Group is simple and convenient. We provide an online option for you to gain pre-approval for an amount that truly reflects what you can afford. The application involves providing information such as self-reported property details, a soft credit pull, income, and assets. The credit check we perform will not have an adverse impact on your credit score.

This is a secure system, which means all your details are protected. The technology utilized by Galaxy Lending Group is designed to match each borrower to the best available mortgage options for their budget. What you get at the end of this streamlined process is a pre-approval that will give you an accurate idea of how much you are able to borrow in order to purchase your dream home. Using this information strategically is the key to making your home-buying journey a much less stressful experience.

Benefits of a Pre-Approval Letter

If you do not have the most accurate estimate of what you can borrow, it is very easy to fall into the trap of hunting for homes you really cannot afford. It’s not just about the process of securing property, either. If you are approved for a loan that doesn’t suit your budget based on the most comprehensive and accurate information, you may end up struggling to keep up with mortgage payments. If there is one thing worse than not being able to buy your dream home, it’s landing the property, then losing it due to defaulting on payments.

A pre-approval letter will help you understand the scope of the buying power you have when it comes to house hunting. You won’t have to deal with the mortgage underwriting process just to find out what you can afford. If the pre-approval amount does not turn out to be what you hoped for, you can arrange a consultation with Galaxy Lending Group to discuss where you are financially and where you need to be to qualify for the home you know you deserve.


Using a Pre-Approval Letter

Agents love to see pre-approval letters. It shows you are determined in your search for a home and already understand your budget. The pre-approval letter has serious power when used to leverage your position as a potential buyer. For sellers who may settle for a lower price without knowing your budget, requesting a pre-approval letter that is customized to the property is also an option. Presenting a lower approved amount can sometimes land you a prime property at a lower price than your approval amount or give you room to negotiate on price without giving too much away to the seller.

Industry regulations only allow a pre-approval to stand for 90 days; however, it is easy to get pre-approved all over again without any credit score issues. This is also an option you can employ if your circumstances change in a way that increases your budget amount. Once you have gone through the process the first time, you will find subsequent applications are a breeze.

Alternately, you can contact Galaxy Lending Group if you would like to discuss pre-approval with a qualified consultant who specializes in helping people just like you find the right mortgage to suit your budget. It’s the finer details that set us apart from the rest when it comes to providing customers with tailored solutions to entering the housing market or purchasing a new home.

Call Galaxy Lending Group to find out more about how we can provide you with a pre-approval letter and all the other tools you need to buy your home.