If you’re ready to begin your search for a new home, pre-approval is an essential phrase to become familiar with. Pre-approval gives both the buyer and the seller more confidence in the sale, and if you get pre-approved sooner rather than later, it will save you plenty of time and effort. At Clearview Realty, we realize looking for a new home can be complicated, and we want to help make your experience as stress-free as possible. Here, we have provided everything you need to know about pre-approval and why you should consider it early in the process.
Pre-approval is a process by which the buyer goes to a lender for verification of their financial standing. A lender will look at your current debt, income, and credit history to determine the amount you can pay monthly, your interest rate, and how much you can borrow. Then they will draft a pre-approval letter, which the buyer can present to the seller. A pre-approval letter does not guarantee a mortgage loan, but it gives the buyer a clear idea of where they stand and what they can afford moving forward.
The reason you should make pre-approval a priority is two-fold. First, from your perspective as a buyer, it will give you more assurance as to how much you can spend on a home. Knowing your exact budget will help you zero in on a dream home within your means without the setback of eying a home out of your price range. It will also speed up closing on a home once as you are ready to move forward with your choice, as pre-approval hastens the loan process.
Second, a seller will be more willing to take an offer if the buyer is pre-approved. From their standpoint, someone with pre-approval is a serious and dependable buyer. They see that you are prepared, financially responsible, and you are coming to the table with solid proof of your ability to purchase the home.
Clearview Realty has more than 25 years of experience in the mortgage industry – just the expertise you need for a successful outcome. Our team of mortgage consultants work to simplify the process for you, while educating you on this complex process. Our priority is customer service. It is our goal to make this process as easy and convenient as possible while getting you the best deal on your loan. We work with borrowers of every type from those who want to buy their first home, refinance the house they are in now or have credit challenges. Whether it’s your first home or you’re an experienced home buyer, we’re here to ensure everything goes as smoothly as possible.