The Advantages of Getting Pre-Approved

The advantages of pre-approval are often overlooked because it is much more fun to go out and search for a new home without worrying about how much you can afford, etc. It is hard to pass up a day of driving around and looking at all of the great homes. The truth is, getting your loan application pre-approved can keep you from wasting your time, as well as help you to avoid some of the pitfalls of buying a home.

Pre-approval means that you've met and conferred with a mortgage lender, your credit files have been reviewed, and any questions which the lender may have had, have been answered. Your loan consultant, after consideration, believes you to be credit worthy and qualified to borrow up to a predetermined amount. Based on the information you provided, your loan consultant, or company, will issue to you a letter of pre-approval which shows you borrowing power to potential home owners.

Being pre-approved is not the same as closing on your purchase or your mortgage. The full process will still need to be completed, but your pre-approval will speed up the loan process because most of your information has already been reviewed and will only need to be confirmed.

Outside of speeding up the loan process, pre-approval gives you power when you are searching for your next home. You will be able to look for a home and when you have found a property which meets your needs, you can make an offer to the seller. Having your letter of pre-approval will show the sellers that you are serious and that you are able to purchase the home. Why is that important? Because the seller may have a number of offers on the table. Your offer will have a greater chance of acceptance if the seller knows that there will not be financing contingencies and additional delays.

Another advantage of pre-approval is the disappointment factor. In many cases, would-be home buyers will scour the local market looking at every home in every neighborhood. It's a big task and often times can dampen the fun of buying a home. If you are pre-approved, you know about how much money you are willing, and able to spend. This will help you to narrow your search, and make your Realtor's life a little easier. (If you should decide to work with one.) There are also some cases where a home buyer has found that perfect home, made an offer, and later found out that they were unable to close on the home because they could not get the financing. This is not a situation anyone likes and is easily avoidable by working with your lender prior to making an offer.

Not many home buyers will pay cash for their next home, in fact, according to the National Association of Realtors, close to 90% of all homes purchased are financed. If you know that you will need a loan to buy your next home, it is a good idea to give yourself the security, the peace of mind, and the perks of having a letter of pre-approval.

We would like to help you get started right now. Complete our online application now and we'll begin reviewing your information immediately. We will then contact you to go over specifics and issue your letter of pre-approval. After all, looking for your next home is the fun part and we don't want to hold you up any longer than necessary. So let's get started.