The Most Important Step to Take BEFORE you Begin the Home Buying Process
by Dietchi Thomas
on Wednesday, February 24th, 2016 at 10:12am.
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!