Getting Pre-Approved

Pre-Approval Prevents Problems and Can Benefit a Purchaser

One of the biggest mistakes a home buyer can make is not getting pre-qualified or pre-approved for a loan. By getting pre-approved, a homebuyer not only knows what they can afford, but it also gives them a competitive edge in negotiating on a home.

Save Time and Increase Negotiating Power

A pre-approved loan is one in which you and your lender have gone through all of the loan documentation. You benefit by having your loan pre-approved in several ways.

First
, you eliminate any surprises about your ability to borrow by providing the lender with the information upfront that is required for you to purchase a home. If there are questions about income, credit or down payment you can address them and resolve them without the last minute panic that can occur if you have not been pre-approved.

Secondly, a pre-approval letter gives you a better negotiating position with the seller. It not only shows the seller you can afford the home, but that there will be no surprises in the loan process later. This can be helpful if you find yourself in a situation where there are multiple buyers bidding on a property you want. A seller is most likely to accept the offer from the buyer that has been pre-approved for financing over other potential buyers. One of the seller's biggest concerns is that a buyer will not quality for the loan to buy their home and it will create problems of re-marketing the home and disrupting plans. Since this is one of the main reasons real estate transactions fall through, the seller's concerns are warranted.

Eliminate Surprises and Close Faster

In addition to having eliminated any last minute surprises and putting yourself in a better negotiating position, having your loan pre-approved allows you to close more quickly. Once you find the property, we can close quickly and you can move into your new home sooner.

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