|
4 Reasons to Get Pre-approved
Getting pre-approved for a home loan only requires a
minimal amount of information from you -- much less than what is needed on
a typical loan application -- and by using one of our lenders, you'll
receive a quick response! Plus, most lenders who grant you a
pre-approval letter will only require that you update your pre-approval
information to confirm that your financial picture hasn't changed since
the pre-approval letter was written.
So why put in the time up-front getting pre-approved? The
following four reasons should make clear why being pre-approved is a smart
decision:
- Pre-approval Is More Powerful Than Pre-qualification.
A
pre-approval is an early assurance from a lender that lets you
know that you already meet the necessary credit requirements for a
specific loan amount (subject to verification). A pre-qualification only
determines how much of a loan you might be able to afford. That's
why a pre-approval is one step better than a pre-qualification.
Know How Much Money You Can Borrow -- Up-front. A pre-approval
gives you a good idea of the amount of money you will be eligible to
borrow when you apply for a home loan. This knowledge enables you to
focus your house-hunting efforts on homes that are within your price
range and that are a good match for you.
More Purchasing Power and Confidence When Negotiating. A
pre-approval demonstrates your financial strength and shows the seller
that you have the ability to buy the house. This helps put you on firmer
ground when it comes to negotiating the price of the house. The sellers
will know and respect that you are financially able to complete the
transaction. And if they have multiple offers, your pre-approval could
give you an edge over a bidder without one.
Enhances Agent Performance. A pre-approval letter tells a real
estate agent that you're a serious buyer. This is particularly important
in a competitive real estate market.
Keep in mind that a pre-approval letter is not binding on the lender.
Any change affecting your ability to pay -- including a job loss, an
interest rate increase, new financial obligations you've assumed, or any
other significant financial changes -- may affect your home loan
pre-approval.
|
