Why A Pre-Approval Is So Important

The pre-approval letter from your lending institution is the key that opens everything in the home buying process. This document will do a couple of critical things. It confirms to any seller that you’re able to make a legitimate offer, backed by the lending outfit you’re working with. It also makes you aware of your buying power; how much house you can afford. 

The pre-approval is an important check early in the process for all parties, but it comes in very handy in a fast-moving market. Imagine riding though the neighborhood you love and seeing a home that just went on the market. It happens to be an Open House, so you go in and have a look. This is the one. But you don’t have a pre-approval letter. This means you are possibly two full days or more behind the other parties who might be making offers on this home. You will have to call your lender, get all your documents to them. They’ll run your credit and begin their process. By the time they’re done, the house may be under contract with another buyer. Or if the home is still available, the price of the home may be greater than the loan you’re pre-approved for. Ouch. 

Start your home buying process with a call to us, then one to your lender for your pre-approval letter. Because now it’s time to go see some houses!!