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Pre-approved for a mortgage

By Terry Savage on September 26, 2019 | Housing / Real Estate

My husband and I are starting to look for a New house. We were going to go to the bank to get preapproved for a loan however a friend of ours told us that you shouldn’t do that until you actually find a house you want because getting pre-approved for a loan will affect your credit rating. Is this true.

Terry Says

Your friend is wrong. Getting pre-approved is a great idea. It not only lets you know how much house you can afford (ie., the maximum mortgage amount for which you qualify), but it also let’s the seller know you are a serious buyer who will have no problem getting financing. That could make your offer more attractive than others.

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