Before you list your current home for sale, it’s smart to ensure you are prepared to move into your next home. Becoming pre-approved for a mortgage is an important part of that process.
Note, becoming pre-approved is a longer process than being pre-qualified. It requires more documentation and will help your lender narrow in on a specific amount you will be approved for under specific conditions.
Your credit will be examined when you get a pre-approval for a home, resulting in a hard inquiry on your report. But, it will tell you and your lender if you qualify for the type of home you seek.
Lastly, getting pre-approved enables you to get ahead on your home search while your real estate agent works to sell your home. You can begin narrowing down your ideal neighborhoods and dreaming about your next home with a price range in mind.