Why Its Important To Get A PreApproval Letter

Dated: November 2 2015

Views: 1236

Image titleImages/31bd6e35e48c52ec7ecad5fb493333b3b7b35f74.jpg" width="483">

If you are thinking about buying a new home in the near future, you may already be searching online to get a feel for the different types of homes available in the local area. You may have reviewed your budget, and you may have a fair idea about a sales price that is comfortable for you to afford.While you may feel as though you have taken the preliminary steps necessary to prepare yourself to buy a home, it is important that you also get a mortgage pre-approval letter for your financing before you starting hunting for that perfect new house or condo.


The Importance of a Pre-Approval Letter

A mortgage pre-approval letter is issued to a loan applicant after he or she has passed through a preliminary credit review process. Most of these letters state that the individual is pre-qualified for a property with a maximum sales price, and it is contingent on the loan applicant providing supporting documentation, such as tax returns and bank statements.

This letter gives you a better idea about what it will take for you to get final loan approval and what loan amount you may qualify for. The letter is also provided to a seller, and it gives the seller the confidence that comes with knowing that you are a qualified buyer. When a seller has an offer from a buyer with a letter and another offer from one without a letter, there is a good chance that the seller will opt for a buyer who is already pre-qualified for financing.

How to Get Your Pre-Approval Letter

As you can see, there are several reasons why it is important to get pre-qualified for your mortgage financing. Getting a pre-approval is generally a straightforward process, but it can seem intimidating. You will need to complete a loan application, and this may be done in person or online with a lender or mortgage company. You will also need to sign an authorization for the lender to pull your credit report. After taking these steps, you typically will be able to receive a pre-approval letter within a day or two.

When you have plans to purchase a new home, you likely will need to apply for financing in order to complete your plans. Getting a pre-approval letter up-front can help you in a number of ways, and you can easily take the steps necessary to get pre-approved for your mortgage. Simply contact a mortgage company or lender today to get started with the process.

Author 

Mike Smalley 

NMLS #289846


#GreatHomesGroup

Want to Advertise on this Site?

Latest Blog Posts

NEW LISTING AT 792 E MICHIGAN ST UNIT 9 ORLANDO

Located in the BEAUTIFUL lakefront community of La Costa Brava this ground floor condo has it all! This unit has been gorgeously maintained and has a warm, welcoming interior. Enter and you’re

Read More

NEW LISTING AT 32135 TIMBERLAKE DRIVE MOUNT DORA

FIVE ACRES IN MOUNT DORA! Situated in a peaceful neighborhood, if you’re looking for a spot where you can enjoy the great outdoors, you’ve found it! Build your dream home here or update the

Read More

NEW LISTING AT 610 ANHINGA ROAD WINTER SPRINGS

Lush landscaping provides incredible curb appeal and welcomes you to this beautiful Winter Springs home! Upon entering you’ll find a fantastic living room/dining floor plan featuring soaring

Read More

NEW LISTING AT 428 EAST ORANGE AVENUE EUSTIS

BRAND NEW ROOF! Historical charm and modern updates come together in this amazing two-story Eustis home! Situated on a large corner lot, where a short walk takes you to downtown as well as Lake

Read More