August 16, 2013

What are the Advantages of Being Pre-Approved?

The housing market today is extremely competitive. While home prices and mortgage interest rates are still historically low, the inventory of available homes is not there. As a potential home buyer you want to make yourself as desirable as possible to a seller. One of the best ways you can set yourself apart from other home buyers is by getting pre-approved by a mortgage lender.

Having a pre-approval letter from a lender gives you a few advantages. First of all you know exactly how much you can spend on your home. When you are pre-approved by a lender it means that they have verified all the information you have given them by looking at your W2s, pay stubs, bank statements and credit report. The lender will analyze this information and give you the exact amount you are approved for and what types of interest rates you can expect.

Being pre-approved for your mortgage home loan will also save you a lot of time. It will save you the hassle of looking at homes you cannot afford. When you are making offers on a home a seller will be more willing to work with you than with a buyer who has not been approved by a lender. The preapproval letter lets the seller know that you can afford their home.

Questions? Contact us below or at 708-531-8388.

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