A pre-approval letter from your lender is written assurance that you are able to borrow money to purchase a home up to a certain amount. Its based on your credit history, employment, income and assets. When you walk into a contract negotiation with your letter, it tells the seller that you are serious about purchasing their home and that you have taken the extra steps to make purchasing a home a reality. Here are a few reasons that it is important to get pre-approved.
You will know how much house you can afford -- There is nothing worse than looking at homes to find out later that your mortgage lender won't approve you for. It is much better off to know in the initial stages what price range you need to be in so you aren't disappointed later. This will also help your real estate agent narrow down the options for homes to look at and makes the selection process more efficient.
It adds clout -- There are situations when multiple offers can come in for the house that you love. Sellers will normally lean towards the offer that is accompanied by a pre-approval letter. Having a pre-approval letter instills confidence that the buyer is financially capable of buying the house.
It saves time -- Obtaining a home mortgage can be a lengthy process. By getting pre-approved ahead of time shortens the time it can take to get to the closing table, which means you can move into your new home that much faster.
Some agents won't work with you without it -- Some agents feel it is a waste of their time if you haven't already taken the steps to get pre-approved. By already having your pre-approval letter in your hand when you start your home buying process, it guarantees you that your agent will be working hard to find you that new home.
It just makes sense. By having a pre-approval letter in hand when you start your home buying journey allows you to know up front what you can and cannot afford. It gives you that little something extra that might make your offer stand out when multiple offers are on the table. And it saves you time.
Author:Andrea Ackerman Phone: 334-717-6689 Dated: March 31st 2017 Views: 98 About Andrea: ...
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