A mortgage pre-approval will give you a clearer picture of your purchasing budget, and a mortgage pre-approval letter will give you greater bargaining power in the eyes of sellers.
Mortgage pre-approval is the process of reviewing your finances to determine the maximum home loan that you can afford. Lenders like Quintessential Mortgage Group will take an in-depth look at your finances, including your:
To be clear, a mortgage pre-approval isn’t binding, and your final mortgage loan won’t be determined until you go through the actual lending process. However, many sellers prefer to work with buyers who have a mortgage pre-approval letter, which can be invaluable in a competitive housing market.
Pre-approval and pre-qualification are both ways of determining your purchase budget. And while some lenders use the terms interchangeably, they are not the same. During pre-qualification, you’ll simply provide an overview of your income, monthly debts, and other financial information, and you’ll receive a rough estimate of your maximum loan amount.
Your mortgage lender will not check your credit report during pre-qualification. This makes the process much less accurate than pre-approval. However, pre-qualification has its advantages. Pre-qualification can give you a general idea of your price range, which can help you start the process of looking for a home.
Follow the 28/36 rule
Try to keep housing costs under 28% of your gross income and total debt under 36%. It’s not a hard rule, but it’s a solid guide when deciding your price range.
Buying a home should be exciting, and getting preapproved is just about clearly telling your financial story. When your documents are ready upfront, everything moves faster with fewer surprises and stronger offers. Having your income, assets, and credit info organized gives lenders a clear picture and saves you a ton of time and stress. The more prepared you are, the more confident you’ll feel when it’s time to make an offer.
A good credit score typically starts at 620 for conventional loans, while FHA and VA loans may accept scores as low as 500, though higher scores offer better terms. A strong credit score can help you secure lower interest rates, saving you significant money over the life of a home loan.
Real estate investing means buying property to earn income, either from rent, resale, or both.
Long-term rentals
Buy and rent on yearly leases for steady monthly income and long-term value.
Short-term rentals
Vacation rentals like Airbnb that can earn more during busy seasons but fluctuate.
Fix and flip
Buy, renovate, and sell for profit. Faster money, but higher risk and costs.
House hacking
Live in one unit of a multi-family property and rent the others to cover your mortgage.
Conventional loans
Good for long-term rentals with 15–25% down and fixed or adjustable rates.
DSCR loans
Based on how much rent the property makes, not your income.
Fix-and-flip loans
Short-term loans for buying and renovating properties quickly.
There’s no time like right now to find out if you qualify. Getting pre-approved for a mortgage is easy. We’ll just need your contact information so that we can help you start the loan process. There’s no obligation, so get started now to learn how Quintessential Mortgage Group can help you.
