Why Getting Pre-Approved for a Mortgage Should Be Your First Step

Finding your dream home is an exciting journey. Before you start looking at houses in the Hudson Valley, there’s a crucial first step: getting pre-approved for a mortgage.

This step sets you up for success and streamlines the entire homebuying process. At TEG Federal Credit Union, we’ll guide you with confidence. Let’s break down why a pre-approval is your best move.

What is a Mortgage Pre-Approval?

Pre-approval is more than a quick estimate. It’s a thorough review of your financial situation by a lender. When you work with TEGFCU, a dedicated mortgage officer will look at your income, assets, credit score, and debts. Based on this information, we’ll let you know exactly how much you’re qualified to borrow for a home loan.

Think of pre-approval as a financial green light. It helps you focus on homes that align with your budget. This check means your search starts on solid ground.

What Factors Affect Your Pre-Approval?

Lenders consider several key details:

• Debt-to-Income Ratio (DTI) – This compares your monthly debt payments to your gross monthly income. A lower DTI is better.
• Income and Employment – Steady, reliable income shows lenders you can handle monthly payments.
• Credit Score – A stronger score opens the door to better loan terms and lower interest rates.
• Payment History – Making payments on time shows you’re a responsible borrower.

Why It’s a Power Move (Especially Right Now)

The housing market keeps changing. Mortgage rates move. Prices shift. Inventory has been low. In this tough environment, pre-approval gives you a big edge.

Know Your Budget and Shop with Confidence
Your mortgage pre-approval spells our your maximum budget. You’ll avoid the disappointment of falling for a home that’s out of reach. When you know your numbers, you can focus your search and feel confident making an offer.

Make a Stronger Offer
Sellers are more likely to take your offer seriously if you’re pre-approved. That letter serves as proof that you’re qualified, and that your finances have already been verified. This makes your offer stand out. As a pre-approved buyer, you’re ready, not risky.

Move Fast When You Find the Right Home
Well-priced homes go quickly in the Hudson Valley, especially in our areas of Dutchess, Orange, Putnam, Rockland, Sullivan, Ulster, and Westchester counties. If you wait to get pre-approved for your mortgage, you could lose your dream home to someone who’s ready. The process can take time, so securing pre-approval early means you can act the moment your perfect home is available.

As Experian explains:
” . . . you’ll want to make sure you receive your preapproval letter before you start looking at homes so you can submit a strong offer as soon as you find what you want. The process can take anywhere from a day to a few weeks, so if you procrastinate, you may lose out to a competing offer.”

Don’t Wait Until You’re “Ready.”

A pre-approval doesn’t mean you’re buying a house tomorrow. It means you’ll be ready when the time is right. Most mortgage pre-approvals last 90 days and can be refreshed if your plans change.

Remember, the pre-approved amount is the maximum you can borrow, not always what you should borrow. Borrow what fits your budget. Our TEGFCU mortgage officers are happy to review your finances and help you find a comfortable loan amount.

Make Your Move with TEGFCU

At TEG Federal Credit Union, we’re dedicated to making homeownership straightforward and stress-free for our members. Our mortgage officers live here too. They’re truly neighbors helping neighbors who understand the ins and outs of the local housing market.

As lending specialists, our mortgage team is here to answer your questions, offer expert advice, and guide you through each step with confidence.

So, if you’re even thinking about buying in the next few months, get ahead of the game by connecting with your real-estate agent and a trusted lender, like TEG.

💡 Ready to get started? Connect with one of our knowledgeable and local TEG mortgage officers today:

Matthew Bannan – NMLS# 404022

Jessica Schoen – NMLS# 22486

Jeffrey Shields – NMLS# 1466211

Darren DiBenedetto – NMLS# 404038

Scott McNally – NMLS# 1841508

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