1) A pre-approval will tell you how much you qualify for on a new home loan. This helps you and your Realtor to look for a properly that is not above the amount that you can afford.
2) A pre-approval gives you the chance to go over the different loan programs available to you with your lender.
3) In today’s market it takes time to get a loan approved. Getting a pre-apprval puts you ahead of the game by sending all of your paperwork in before you get into escrow. By having a pre-approval, you may be able to shorten the escrow period needed to close a loan. This can make a big difference to a seller that is looking to close as soon as possible.
4) Most smart Real Estate agents will not start the process of searching for homes until you have pre-approval.
5) If by chance you do not qualify for a home loan at the time of the pre-approval, your lender can guide you in the right direction to prepare you to purchase in the near future. Sometimes there are items on the credit report that can be fixed rather quickly, or disputed to help you qualify. Without setting down with your lender, you would not have known about these issues until you are already in escrow, which would either delay the close of escrow or cause the property to fall out of escrow.
6) You will learn about the lenders guidelines on locking in an interest rate.
7) You will then be able to relax and know that you have your financing in place when you find the right home for you and your family.
Info provided to us by Heather Gilstrap Of Mortgage Consultant Legacy Mortgage, LLC
Please contact us for more information or to talk more about the qualification process.