What Does it Mean to be Pre-Approved?

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.

Questions? Contact me today!

Buying a Home: First Steps

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!