What Are Pre-approved Home Loans?
When you want to purchase a long term assets it is fully based up on the loan availability. It is good to go for pre approved loan because than it is easy to plan what is affordable for you and can get the loan easily. To get this provision you need to apply for pre-approval to a lender. The lender will go through all the procedure such as your credit check, identity check background and so on.
Then he will give the borrower some details like
1. The loan amount that can be provided to the borrower.
2. About the rate of interest he can get.
3. Type of loan he can get like secured or unsecured.
4. The tenure of loan.
After this the borrower can approach the seller with his details and the lender charges some fees to complete this process. The process of pre approval loan is beneficial as you have details provided by lender and can search property according to it. You can also look for down payment option before finalizing your dream home. Therefore it is a good option to get your dream home.