Get pre-approved to understand your home price range, and much more
Talk to any mortgage professional about getting pre-approved and their tone becomes very serious because it’s such a crucial first step in the homebuying process. Before cruising around with your real estate agent to shop for your dream home, get pre-approved! Ready for this step?
What is a pre-approval?
A pre-approval is a letter from a mortgage lender, representing a conditional commitment to provide financing for the purchase of a home. In order to receive a pre-approval letter, your Mortgage Loan Originator must review your basic financial documents and then give a stamp of approval expressing confidence that you qualify to buy a home.
Why is a pre-approval important?
There are so many reasons! So here’s the short list in less than 275 words.
- Find out if you qualify! Don’t waste your time shopping for a home, only to find out you can’t afford it. Learn if you are in a position to buy, and how much you can afford.
- Understand your strengths and weaknesses. If you find out you don’t qualify for a home loan just yet, it’s best to know as soon as possible so you can create a plan on how to improve in the needed areas so you can buy your dream home in the future.
- Give yourself an edge over competing offers. Sellers understand the power of the pre-approval. It shows you’re serious and have the financing needed to support the offer.
- Work with the best. Many top real estate agents also understand the power of the pre-approval, and will only work with you once you have it. Otherwise, they might end up driving you around for hours, only later to find the homes they’ve been showing you are out of your price range!
- Identify a mortgage expert. (hint hint, OneTrust Home Loans). It’s no secret that the home loan process is intense, requiring a lot of documentation and financial strategy decisions. Getting pre-approved with a mortgage lender doesn’t mean you’re obligated to stick with that specific mortgage professional for the entire homebuying process, but it does give you the opportunity to get a feel for the level of service they deliver and what you can expect down the road. So really, give us a call, it doesn’t hurt!
There is a difference! Pre-approval vs. prequalification
The term “pre-approval” is loosely used in the mortgage industry, and is often interchanged with prequalification. If you’re only providing basic financial information verbally, without sending the mortgage lender any documents to review, the letter you receive is a “prequalification” and doesn’t really mean much. It’s simply a “number” that will give you a general home price range without any real fact checking (you can get this online with a mortgage calculator).
Have we convinced you to get pre-approved today? You’ve got nothing to lose, so give us a call already!