Why Get Pre-Approved?

In today's hot market, having a pre-approval letter can give you a serious advantage over those who don't.

  1. A pre-approval tells both the real estate agent as well as the seller that you can stand behind your offer.
  2. It means a lender has gathered all of your personal information, reviewed your income documentation and credit report, and has determined if you will be able to qualify for a loan at the time of closing.
  3. Getting a pre-approval takes about 30 minutes, there's no cost and no obligation. 

A pre-approval will also give you some important information that might affect your home buying goals. The process will include

  • a discussion about what loan size makes sense for you based on your financial situation
  • a review of your credit history and how that could influence which type of loan program and interest rate you can get
  • an estimation of what your monthly payment could be along with how much money you will need for closing.

Lastly, and maybe most importantly, you will gain helpful insights for navigating the home buying and loan application process from an experienced loan officer.

 

For more detailed information on the home buying process, check out the Shopping for Your Home Loan, Settlement Cost Booklet published by the Consumer Financial Protection Bureau.