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Pre-Approvals: 7 Things You Need to Know Before You Buy

It’s important to talk with Lenders or Mortgage Loan Originators and find the one that best suits your needs. This is the FIRST STEP you should take before looking at properties to purchase.
When speaking with lenders, have basic financial information at the ready (think bank and other financial statements, tax returns, paystubs, security IDs etc).
Pre-Qualification vs Pre-Approval: Just about anyone can get a general Pre-Qualification Letter. If you really want to buy a property, push for a Pre-Approval. This carries more weight for you as a Buyer, and is only given to those who show proof of financial stability.

A great lender will be easy to work with, but also demanding to keep you on schedule. Answering their requests in a timely manner will make for future smooth transactions.
You, of course, don’t have to spend as much as you’re pre-approved for, but a pre-approval letter generally sets the limit or expectation of the amount of a loan you can secure. If you’d like to spend more, just bring the difference in cash to the table.
When talking to lenders don’t be afraid to ASK QUESTIONS. They are the professionals and should be able to discuss all associated costs and fees from loan programs and office fees, to interest rates/points and projected closing costs.

Realtors will take you seriously once you have a Pre-Approval in hand, as they know you are not just playing around or wasting their time. And, when you find “THE ONE,” you want to be ready to roll to make an offer and get under contract. If you haven’t been pre-approved, chances are another eager savvy buyer has.

Posted by Erin Kiel on July 8th, 2020