While you are not required to provide a mortgage pre-approval letter in order to make an offer on a property, it vastly improves your chances of having your offer accepted. This is because a pre-approval assures the sellers and their broker that you are serious about buying their home, financially qualified to buy their home, and that there will not be extensive delays to closing since you have already begun the process of working with a lender.
When you think about buying a new home, you probably think about square footage, fixtures and finishes, along with the right neighborhood or local schools. However, one of the most important things to consider early in the process is your mortgage application. When should you apply for a mortgage
Your lender will look at scores from each of the three credit bureaus: Equifax, Experian, and TransUnion. Most lenders will then drop the highest and lowest and use the middle score in making their determination. Your credit score is affected by a number of different factors and plays different roles in different loan scenarios.
How are credit scores calculated?
Credit or FICO scores are based on a combination of the following factors:
Payment History (35%)
Amount of Credit Used (30%)
Age of Credit (15%)
Mix of Credit Types (10%)
New Credit Inquiries (10%)
Credit Scores for All Types of Mortgages
Your credit score is affected by a number of different factors and plays different
