The Pre-Approval Process
Applying for a loan and obtaining approval before finding a home has it's distinct advantages. Unless you are paying cash for a home, making a loan application is an inevitable step. So why not get started now?
Pre-Qualification vs. Pre-Approval
- Pre-Qualification: This is the procedure in which you receive an opinion from a mortgage lender about how much you qualify for. Also this process would uncover any obvious difficulties that might pose a problem. While this process is recommended, the pre-qualification does not have all the advantages of a pre-approval.
- Pre-Approval: A pre-approval requires a complete application with credit reports and verifications. Time limits are usually placed on pre-approvals so it is recommended to be ready to to look at homes and make a decision after you receive your pre-approval commitment
What are the advantages of a Pre-Approval?
- Looking at the right priced homes
- Avoiding the disappointment in deciding on a home that you can't afford
- Gain confidence from the seller. Saving money with a seller who is confident about taking their home off the market with buyers who have a definite loan commitment.
- One less contingency that the seller (and you!) will be concerned with to get the home sold.
- Accelerating the closing process. The lengthiest process is usually the mortgage approval, which affects the rate at which other tasks can be completed (i.e. the appraisal)
- Minimizing the anxiety of not knowing whether you qualify
Ultimately, the entire process begins with finding a mortgage lender you trust! Need a mortgage lender? Check out our website to find a lender who can kick start the process in just minutes. Go to Our Team> Our Preferred Lenders to find out more information.
Also check back next week, we will discuss how you can prepare and what to expect from the mortgage application process!