Pre Approval

1. You’ll put yourself ahead of the curve by getting pre-approved for a mortgage. 

2. It speeds up the process, puts you in a superior bargaining position, and makes you a more informed buyer.  

3. You know the details of your financing before you pick out a house. You not only know how much house you can afford, but you also know the terms of your loan.

4. You know how much you can spend and won’t waste time looking at homes you can’t afford. 

5. You can act quickly to make an offer when you see a home that meets your needs and negotiate with confidence.

6. You could put yourself ahead of competing buyers who don’t yet have financing in place.

7. You might get a faster loan closing than a buyer who is not pre-approved. 

8. Real estate agents want to work with pre-approved buyers. Good agents can use their time – and yours – more efficiently when they know they are helping you shop for a home in the right price range.

9. Sellers are looking for pre-approved buyers. Many prefer to entertain offers only from pre-approved buyers. They don’t want to spend time and energy negotiating a transaction only to have that deal fall through at the last minute for lack of financing.

10. Pre-approval is a win for everyone involved in the home buying process:

• the seller,
• the realtor, and
• most of all, you, the home buyer

A mortgage pre-approval uses your verified credit score, income documentation, bank statements, employment verification, total assets and your desired down payment and mortgage amount to approve you, as a buyer, to purchase a home.  Once pre-approved, you’ll receive an itemized estimate of interest rates, closing costs, monthly payments, and the maximum amount you’re approved to buy. This information is crucial to understanding how much you can borrow.  Mortgage pre-approvals last for 90 days.

A mortgage pre-qualification does not use verified information to approve you, whereas a pre-approval does. Pre-qualifications use self-reported information and don’t take the additional steps to verify it. Pre-qualifications provide estimates rather than accurate numbers. A pre-approval requires an actual credit check and supporting financial documentation, which gives a precise, customized quote for every home buyer. Be wary of lenders that suggest a pre-qualification because these are not the same as a pre-approval.

1. Check your credit score at all 3 major credit bureaus. 

2. Weight the different types of mortgages.

3. Shop multiple lenders.

4. Learn the true cost of the mortgage.

5. Ask for a pre-approval letter.