Although getting pre-approved may be a slight ding to your credit score, the upside to losing a few points for a few months far outweighs the risks. Pre-approval is a conditional written commitment from your mortgage lender with the maximum loan amount you’re pre-approved to borrow. This is a critical step in the homebuying process because it provides clarity on the home you may be able to afford, as well as how much you may need for a down payment. Most sellers give preference to offers backed with pre-approval letters. You don’t want to lose a bidding war on your ideal home because you failed to get pre-approved.
Guild’s Credit Approval Protection* program can also give your bid a boost because it gives added confidence in Guild’s pre-approval process. If Guild issues a preliminary underwriting credit approval and is then unable to close on the borrower’s loan, Guild will pay the borrower up to $1,000 for inspections, appraisals and relocation expenses incurred. Guild will also reimburse the borrower for their lost earnest money deposit, up to $5,000.
From pre-approval to closing, Guild Mortgage advisors are here to guide you through your homebuying journey. Connect with an experienced loan officer today.