Why Be Pre-Approved For a Home Loan?

Real estate experts tell first-time home buyers that it’s critical to apply for a loan before shopping for a home, and it’s true; this is an essential first step.

But do you know that it’s far better to be Pre-Approved for a loan than to be Pre-Qualified?

There are advantages to gaining Pre-Approved. When the lender hands a borrower a Pre-Approved letter, it means the borrower can:

Save Time by Looking at the Right Homes
When searching for homes you can set the parameters to more tightly encompass the selection of homes that you are qualified to buy. This way, you’ll save time by checking out homes you can actually afford to buy instead of falling in love with pie in the sky.

Spend More Time Examining the Right Homes
By decreasing the inventory of homes to those that fit your parameters, you can allot more time to thinking about all the little nuances each home has to offer. Lots of home buyers never move past the price point when sorting out their preferences, but now you can devote your energies to looking at the little things that matter to you most such as whether your SUV will pass through the overhead space in the garage or smash into the microbeam.

Gain Confidence & Avoid Disillusionment
Now when you find that perfect home, nobody can take it away from you by telling you that you do not qualify to buy it.

You can minimize anxiety and remove last-minute loan surprises that could disqualify you.
You’ll sleep better at night knowing that the home you selected is yours.

Increase Bargaining & Negotiating Power
In today’s market, sellers are increasingly demanding Pre-Approval letters from buyers and by having yours done up front you can get your offer in quickly.

Enjoy a Faster Closing Period
Because there is no window period while your loan application is processed, the lender can speed up the entire processing procedure. Appraisals can be ordered immediately. It’s possible to shorten a 30-day closing to two or three weeks, which comes in handy if a seller needs to quickly move and can’t decide which offer to accept. Yours will move to the front if you can accomplish the seller’s need to quickly close.

Because mortgage approval is generally the longest contingency to satisfy in a purchase contract, it is to your advantage to obtain a Pre-Approval letter as soon as you’re ready to begin your search. Lenders will render a decision based on your complete loan application, employment verification and data from all three credit reports.

Being pre-Approved is a pretty easy process and only takes 60 minutes or so of your time. I work with a lender who can complete a variety of loans, depending on your qualifications. Please call me for more info.

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