Why Pre-approval important before searching for the home?
for a home loan is one of the most important steps in the home-buying processes!! Buyers should
apply for a loan and receive approval from a lender is called pre-approval. It must be done before searching
for a home.
- Pre-approval always strengthen your offer and negotiating position. A home
seller usually accepts an offer from a pre-approved buyer over one whose financial picture is still in question.
- Pre-approval determines
your price range/affordability and increases your thoughtfulness of home search -- based on your down payment and pre-approved
- Pre-approval always helps you to complete
your deal faster by reducing weeks off the closing as the lender has already conducted its credit analysis and approved
you for a mortgage loan.
There is also a significant difference between buyers who are “pre-qualified”
and those who are pre-approved.
Pre-qualified -- buyers are those whose lenders have determined how much they
can borrow based on the information the buyer has provided to the lender. The lender has not verified
to determine the buyer's true creditworthiness. The buyer still must fill out a loan application and go through the
lender's approval process.
Pre-approved – means that the lender has already done a credit check along
with verification of employment and deposit. The lender's pre-approval is a commitment to the buyer for a loan up to
a certain predetermined amount. The only piece missing is the lender’s appraisal of the home to confirm its value.
Please contact us if you want to be pre-approved before searching or purchasing a home. We
will be happy to assist you in all you home purchasing/selling needs.