Getting Pre-Approved

Should I Get Pre-Approved?

It’s In Your Own Best Interest!

A good mortgage lender takes the guess work out of how much you can reasonably afford to borrow based on your particular financial picture and income. He or she can provide you a good faith estimate of the costs involved in a loan, various scenarios depending on how much down payment you make, and advice on loan structures, interest rates and other information to help you in your decision-making process.

Mortgage pre-approval, which is more meaningful than “pre-qualification” (which can be quickly done in a phone conversation with a lender), establishes your price range and strengthens your buying position by letting the Seller know that you have already been approved for the loan. It can also ease time constraints once the purchase agreement is signed between Buyer and Seller.

In today’s tight lending market, many real estate deals fall apart because the buyer discovers he cannot qualify for the loan amount he imagined. To save yourself — and the seller — disappointment and, perhaps, incurred costs, it is important to get pre-qualified BEFORE looking at properties for sale.

Consider these Scenarios:

You’re out looking at homes, find the perfect house and work out a deal with the Seller. Three weeks later, the lender informs you that the house is way over what you qualify for and does not approve your loan. The Seller has already bought another house. You’ve given notice where you’re renting and told all your friends about the great house you bought. And then, there’s the money you’ve already spent on inspections on a house you can’t own.

or:

You and your agent have been working diligently finding that “perfect” home. A new listing comes on the market that’s priced right and has got everything you’ve been looking for. You write an offer. Your agent takes it to the listing agent and is informed that another offer is coming in and will have to present both offers simultaneously to the Seller. The other Buyer is preapproved for his loan. Whose offer do you think the Seller will negotiate first??

Should You Get Pre-Approved for a Loan First??

Most Definitely!!

At GreenRoads we have a list of local mortgage brokers and bank loan officers recommended by previous clients. We require buyer pre-qualification to show homes, but pre-qualification is in your own best interest.