#pre-approval

Car Loan Pre-Approval: Why It Matters and How to Get It When buying a car, many people focus on the vehicle itself—model, features, mileage, or price. But one important step often overlooked is car loan pre-approval. Pre-approval can save you money, time, and stress during the car buying process. In this post, we’ll explain why pre-approval matters, how it works, and steps to get it easily. 🚗…

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Welcome to Coast2Coast Mortgage! I m Duane Buziak Mortgage Maestro, a state licensed home loan expert dedicated to making sure your home financing experience is top-notch.

Switched to brokering some years ago as I have long believed the best advice comes from someone independent, not tied, captive, or bound. I have a multitude of loan options, some might even say the most in the state. In addition, as I always start all loan applications with a soft touch, this will NOT affect your credit!

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As a result of the enormous demand for homes over the previous two years, there hasn’t been much of an available housing supply in the U.S. real estate market. Due to this, prospective buyers’ home searches have grown longer. According to recent research by the National Association of Realtors, it will take buyers eight weeks on average to find a property that suits their criteria. After that, more than half of buyers will have to submit two or more offers on various properties before finalizing a deal. Long home searches can be more than simply a test of patience; they also run the risk of causing mortgage pre-approvals to lapse before a sale is finalized.

What is a Pre-Approval Letter?

A pre-approval letter is a preliminary assurance of financing for a mortgage. Lenders receive likely basic financial data from borrowers, such as their social security numbers for returns of taxes, bank statements, and credit checks. The lender analyses the data using their algorithms to decide whether and how much of a mortgage loan they would be prepared to make. Then they produce a letter that the borrower can give to any seller to show that they have the money to pay for the purchase of the home. Pre-approval letters help speed up the acceptance of offers by giving borrowers more credibility.

How Long Do They Last?

The typical letter of pre-approval for a mortgage is valid for 90 days. This is due to the fact that a lot can happen in three months, including the state of the housing market and the borrower’s financial situation. Even if the borrower loses their job or takes out a sizable new loan, the lender does not want to make an unlimited commitment to provide financing.

How To Renew a Mortgage Pre-Approval

Pre-approvals for mortgages can be easily renewed, which is good news. Keep an eye on the due date as a borrower and get in touch with your lender before it expires. After that, your lender can reapprove you after double-checking all of your paperwork to make sure nothing has changed. Updated pay stubs and asset statements might be requested. You must also identify any significant life changes, such as a divorce, job loss, or expensive medical expenses. The terms of your pre-approval are likely to alter if there are any significant changes.

Although the lender already has the majority of your information, this renewal process should go more quickly than the initial mortgage pre-approval process. However, it can still take several days to complete, so start the pre-approval process quickly. 

A Chance to Reconsider Options

Going to renew your mortgage pre-approval may be helpful. You have the option to switch loan types thanks to it. Perhaps you initially decided on a fixed-rate mortgage, but because of the recent increase in interest rates and the adjustable-rate mortgage’s lower starting rate, you may have changed your mind. You can specify that change in your new pre-approval letter.

In order to learn about new financing terms and ensure that your mortgage pre-approval remains valid in uncertain housing today, it is a good idea to stay in touch frequently.