Mortgage Rates For February 23, 2024: Mortgage Pre-Approval 101
Written By
If you’ve heard about mortgage pre-approval being critical to securing a house in a competitive market, you’ve heard correctly. Especially if you want to close quickly, mortgage pre-approval will put you at a major advantage compared to buyers who don’t have one. A bank pre-approval is a time-saver, plus, it informs the seller that you’re very serious about moving forward, and that you have the funds to back up the purchase.
Prior to getting pre-approval, you should check your credit score and improve your credit if needed. Clear up any negative marks on your credit history, reduce debt as much as possible, and take a serious look at what you can change before you buy. As you do this, continue to watch daily average mortgage rates – as rates go up, home prices may fall.
Today’s 30-year mortgage interest rates
The average daily mortgage interest rate for Friday, February 23, 2024 is 7.10% for a 30 year fixed rate. The rate fell 0.06% from yesterday and rose 0.18% from January 2024. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Today’s 15-year mortgage interest rates
The average daily mortgage interest rate for Friday, February 23, 2024 is 6.57% for a 15 year fixed rate. The rate fell 0.01% from yesterday and rose 0.27% from January 2024. This information is sourced daily from correspondent, retail, and wholesale lenders located in the United States.
Mortgage pre-approval process
A bank issues your pre-approval. Most real estate agents will expect you to engage in this process before they help you seriously look. Your lender will let you know what kind of documentation you need to get pre-approved. You’ll need to provide proof of income and show that you can pay on the loan. The number you are pre-approved for will demonstrate the maximum amount the bank will approve you for when it comes time to get a mortgage. (Note, this doesn’t mean you should stretch yourself financially, only that you can!)
Be ready to show proof of big expenses like auto loan payments, student loan installments, and more. Make sure to include not only your main income, but side/gig income as well. Every little bit helps.
Your pre-approval will put you through a credit check, which will ‘ding’ your score just a bit. However, this is a negligible price to pay for getting the pre-approval the sellers desire.
Pre-approvals last 30, 60, or 90 days. After that, you’ll have to get back to the bank and get another pre-approval letter if you aren’t in process with an offer. Pre-approvals are based on the current market and your income – two things that can fluctuate.
Your bank will issue the pre-approval in the form of a letter, which will also include terms to the type of loan you’ll get offered. Once you go from there, the formal underwriting process begins.
