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Mortgage preapprovalsare different from a prequalification.
They may use automated systems to provide quick baseline information.
They pull your credit score to verify this information.
Some sellers may not even allow buyers tour their home if they dont have proof of a preapproval.
Check Your Credit Score
Many lenders haveminimum credit scoresfor different loan types.
Many credit card companies also provide your credit score for free.
Borrowers with higher credit scores will likely receive better loan terms, including lower interest rates.
Gather Financial Documents
During the preapproval process, youll be asked for a variety of essential financial documents.
Its much easier to consolidate those documents upfront.
When reviewing your options, consider the following:
you could consider both online and traditional lenders.
Traditional lenders are often established nationwide, and may offer a variety of mortgage options.
They may, however, have stringent approval processes and requirements.
Online lenders may offer more flexibility in approval processes, depending on what you need.
Its a critical first step in financial readiness, which is essential to take before actually house hunting.
check that that you review lender options carefully, and shop around for rates and fees.
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