Shopping for a home may be fun and exciting, but serious home buyers need to start the process in a lender’s office, not at an open house. As a potential buyer you benefit in several ways by consulting with a lender and obtaining a pre-approval letter. Dawn Scarborough can help you with the pre-approval process by introducing you with an industry proven lender, Fairway Independent Mortgage Corporation
First, you have an opportunity to discuss loan options and budgeting with the lender. Second, the lender will check your credit and alert you to any problems. Third, you will learn the maximum amount you can borrow, which will give you an idea of your price range. However, you should be careful to estimate your comfort level with a given house payment rather than immediately aiming for the top of your spending limit. Lastly, most home sellers expect buyers to have a pre-approval letter and will be more willing to negotiate with you if you have proof that you can obtain financing.
Pre-qualification vs. Pre-approval
A mortgage pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but a pre-approval is much more valuable because it means the lender has checked your credit and verified your documentation to approve a specific loan amount (usually for a particular period, such as 90 days). Final loan approval occurs when you have an appraisal done and the loan is applied to a property.
The BASICS of what you might need for Pre-Approval
- Proof of Income
- Proof of Assets
- Good Credit
- Employment Verification
- Other Documents, including items like SSN, DL#,
Summary
Buying a home is a very important decision and getting the best deal possible, in the right location, with most of the amenities you desire will surely come easier with a pre-approval letter. In fact, by going through the pre-approval process first, the pre-approval may help you better decide what to work for and how to get what you really want. In essence, what is realistic to me and what I can comfortably afford.