What is a Mortgage Commitment, and How is It Different From Preapproval?
When you’re buying a home, getting preapproved for a mortgage is an important step. But what happens after you’ve been preapproved? You might think that the next step is to commit to a mortgage, but that’s not always the case. In fact, there’s a big difference between getting a mortgage commitment and getting preapproved. This guide explains what that difference is and how to get the right one for you.
What is a Mortgage Commitment, and How is It Different From Preapproval?
When you’re buying a home, getting preapproved for a mortgage is an important step. But what happens after you’ve been preapproved? You might think that the next step is to commit to a mortgage, but that’s not always the case.
A mortgage commitment is a written agreement from a lender that says they’re willing to lend you a certain amount of money for your home. This is different from preapproval because it’s written by an official underwriter.
Related: The differences between a home inspection and a home appraisal
What Are the Benefits to Getting a Mortgage Commitment?
There are a few benefits to getting a mortgage commitment:
- It’s an important step in the home-buying process.
- It shows that you’re a serious buyer.
- It gives you more bargaining power with sellers.
- It can help you get a better interest rate.
How to Get a Mortgage Commitment
If you’re interested in getting a mortgage commitment, there are a few steps you’ll need to take:
- Find a lender who offers mortgage commitments.
- Get preapproved for a mortgage.
- Submit your loan application and supporting documentation to the lender.
- The lender will then underwrite your loan and issue a mortgage commitment.
The Difference Between a Preapproval and a Mortgage Commitment
The main difference between a preapproval and a mortgage commitment is that a mortgage commitment is issued by an underwriter, while a preapproval is not. A preapproval is simply a letter from a lender saying that you’re qualified for a loan up to a certain amount. A mortgage commitment, on the other hand, is a binding agreement from the lender that they’re willing to give you a loan for a specific amount of money.
Related: 3 secrets to getting the perfect home in a red-hot market
When Should You Get a Mortgage Commitment?
You should get a mortgage commitment when you’re ready to move forward with the home-buying process. This typically happens after you’ve found a home and you’re ready to make an offer. It’s important to get a mortgage commitment before you sign a purchase contract, because this will give you more leverage with the seller.
How to Prepare for Getting a Mortgage Commitment
If you’re planning on getting a mortgage commitment, there are a few things you’ll need to do:
- Find a lender that offers mortgage commitments.
- Get preapproved for a mortgage.
- Submit your loan application and supporting documentation to the lender.
$225,000
Active
11304 Cayman Key Avenue 2 Tampa, Florida
2 Beds 3 Baths 1,152 SqFt 0.02 Acres
$465,000
Pending
2130 W Spruce Street Tampa, Florida
3 Beds 3 Baths 1,518 SqFt 0.06 Acres
$249,900
Active
14061 Notreville Way Tampa, Florida
2 Beds 3 Baths 1,094 SqFt 0.02 Acres
$560,000
Active
18444 Eastwyck Dr Tampa, Florida
3 Beds 2 Baths 2,700 SqFt 0.31 Acres
Are You Buying or Selling a Home in Tampa Bay?
You can use this website to search homes for sale in Tampa Bay and all its communities. Our site is directly connected to the Tampa Bay MLS, and we update our listings every hour. You can even use our site to create your own account and get emails as soon as a new home hits the market, price change alerts and so much more.
While you’re here, check out these listings:
