Find an Experienced Lender & Getting Pre-Approved
The Importance of Pre-Approval in a Competitive Market
In today’s market, you must get pre-approved first before try getting your dream home, otherwise you might miss out on getting the perfect home under contract if you have not spoken with the lender and are not prepared properly with your finances yet (unless you plan to pay all cash).
Understanding Pre-Qualification
Most lenders can pre-qualify you over the phone and/or through a quick on-line application. They will ask general questions about your income, debt, credit history and assets. With this information, lenders can estimate the maximum loan amount you could qualify for.
Pre-Qualification vs. Pre-Approval: A Key Distinction
Being pre-qualified and pre-approved are two separate things. A pre-qualification letter does not look as strong to a Seller as a full pre-approval specially during any multiple offer situation when you are competing with other buyers who have been fully pre-approved. This is because the information provided to the lender was just general information and has not yet been fully verified.
The Advantages of a Full Pre-Approval
Pre-approved means that you have applied for a mortgage; filled out the mortgage application with your lender, they have received your credit report and verified your employment & assets. With a full pre-approval, you have more credibility as an interested buyer because you know exactly how much you can afford and the Seller can be more confident in your financing that you will qualify for the loan to purchase their home and it will not fall through during the process due to financing.
Choosing the Right Lender
In addition to being pre-approved, it is also just as important to be approved with an experienced lender with a great reputation that is legitimate, organized and accessible so they can provide you with important information throughout the process.
