Getting mortgage pre-approval is one of the first steps toward buying your dream home. Pre-approval boosts the likelihood that the seller will accept your offer and gives you a detailed quote for your homebuying budget.
But homebuyers often hesitate because they think that pre-approval hurts their credit score. Will it?
The truth is that it will temporarily lower your score, as is true whenever a creditor pulls your credit report. But the benefits of getting pre-approved outshine the slight dip in your score. Read how.
A pre-approval usually requires a hard credit inquiry, although a soft inquiry is all that is needed for a pre-qualification. A hard inquiry can lower a borrower's FICO score by about five points or less. These lost points are typically recovered by keeping up with your on-time bill payment and maintaining your credit card debt low.
While every point matters in credit reporting, getting pre-approved is still one of the best actions you can take when looking to buy a home.
Don't let the small dent in your score prevent you from getting a pre-approval! The advantages of getting approved overshadow any negative impact on your credit score. Here's how that breaks down
Knowing how much house you can afford helps you concentrate on properties that fit your budget, saving you time during house hunting. We'll also review your application and, based on your verified income and assets, make sure that your approval aligns with your budgeting.
A pre-approval letter will increase your negotiating power since real estate agents and sellers know that you have talked to a lender and are a serious buyer.
Getting pre-approved can help speed up the closing process because much of your financial information is already in the lender's system. This is one of the reasons why famous financial advice personalities highly recommend getting a mortgage pre-approval.
Getting a mortgage pre-approval is one of the essential steps in the home-buying process. While it's not mandatory, it shows sellers how serious you are about buying the property. Need to learn more? Contact us today for more information.
We've been helping customers afford the home of their dreams for many years and we love what we do. Licensed in NY and Florida
Company NMLS: 5947
Fidelity First Mortgage Corp is a registered Mortgage Broker with the NYS Dept of Financial Services. And with the Florida Dept of Financial Services. All loans are arranged through 3rd Party Lenders.
3974 Amboy Road Suite 302
STATEN ISLAND, NY 10308
Phone: (718) 759-1035
Fidelity First Mortgage Corp strives to ensure that its services are accessible to people with disabilities. Fidelity First Mortgage Corp has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Fidelity First Mortgage Corp makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows bestrateone.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Fidelity First Mortgage Corp accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Fidelity First Mortgage Corp continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Fidelity First Mortgage Corp website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Fidelity First Mortgage Corp website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: Greg@BestRateOne.com