Being pre-approved means you’ve actually been verified and approved by a lender for a specific loan amount. When pre-approved, you will receive a letter that states your approved loan amount.
Unlike getting pre-qualified, when getting pre-approved you provide documented financial information (pay stubs, statements, obligations, credit report, etc.) to be reviewed and verified by the lender.
Benefits of being Pre-Approved:
- Gives you negotiation power
- Helps you know exactly what you can afford
- Allows you to close faster
Keep in mind that being pre-approved doesn’t guarantee you a loan. You still have to complete an application, go through the underwriting process, and wait for final approval from a lender. However, being pre-approved indicates your intent to purchase, so sellers look fondly upon buyers with pre-approval letters.
If you’re thinking about buying a home, the first thing you should do is focus on exactly what you’re looking for by establishing your priorities in the following areas.
Location: determine the neighborhood by prioritizing the importance of how close you need schools, shops, or transportation to be related to your home.
Personal tastes: consider how large a home you need and also what style of architecture you prefer. Think about how many bedrooms, bathrooms, and other features that are important to you.
Budget: how much home can you afford? Find out as soon as possible! Mortgage specialists can assist you with this; ask them for a pre-approved or pre-qualified letter, which will come in handy when you are ready to make an offer.
Want to talk about these steps? Contact me today!
You can definitely consider market conditions, but buying a home is really all about you! The best time to make what many believe to be “the greatest investment of your life” is when you feel financially and emotionally ready. If you are, contact me today!