Q. Why should I consider getting pre-approved before buying a home?
A. Years ago, buyers didn’t worry about financing their home purchase until after they found the home they wanted to buy. Once they had an accepted offer, they’d shop around for a week or so and then submit a loan application.
The recent low inventory of homes for sale (in general) has made home buying highly competitive in many areas. To compete, many buyers are now getting pre-approved for a mortgage. This way, the buyer is seen as more stable, has greater influence in negotiating a purchase price, and can act quickly when they find a home the really love. A pre-approved homebuyer is considered almost as strong as a cash buyer.
There are two parts to mortgage approval: 1) approval of the borrower, and 2) approval of the property. Mortgage pre-approval is a process whereby the borrower is approved for a specific mortgage amount. The approval is usually good for a period of time. A property approval is one with satisfactory appraisal and a clear title report. Final mortgage approval also requires a purchase agreement that is signed by the buyer and the seller.
If you’d like free advice on getting the very best financing for your home, or how to get pre-approved for a mortgage (or even refinancing or a home equity loan), please call me at 561-501-6248 or 954-655-0726.
Rochelle Klein-Loper your real estate professional with Exit Realty Premier/
Author:Salvatore Defrisco Phone: 561-644-0052 Dated: June 1st 2016 Views: 131 About Salvatore: ...
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