Christine Baumann Real Estate Blog
Why getting preapproved is doing yourself a favor. Setting yourself up for success.
Get preapproved for your home loan. Getting familiar with known obstacles ahead of time makes all the difference when it comes to success. Some may say it is even considered wise! You certainly don’t want any hitches if you can help it and working successfully with the right professional (lender in this instance) will give you the peace of mind to make better purchasing decisions. Although it’s almost impossible to make sure there are absolutely no hitches that come up, you can still do yourself a huge favor. Get preapproved and set yourself up for success from the beginning.
Start by collecting and submitting your financial information to the lender. This allows you to work on anything you need up front and lets you know your purchasing power.
- Proof Of Income
- W-2 Statements
- Bank Statements
- Pay Stubs
- Employment Verification
- Assets
- Credit History/Score
- Debt To Income (DTI)
You now know the loan amount you are qualified for and what you can afford!
Prequalification vs Preapproval Letter
What is the difference? A prequalification letter means they have checked your credit and based your qualification on what you verbalize. With a preapproval letter the lender has verified all your assets, income, liability and tax returns. It is fully reviewed by an underwriter. This letter confirms that you have been approved and shows your agent and any seller that you are ready to purchase right away. In fact, it can strengthen the position of any offer you make compared with those who aren’t preapproved! The preapproval letter lasts for a specific time period that can be for a few months, usually 120 days if there are no changes. However, you’ll need to check with your lender to see what the specific timeframe is.
Get preapproved for your home loan means..
- No hurdles to worry about while shopping.
- Easier time shopping since some agents will require this before looking at homes.
- Stronger possible offer position since the seller knows you can buy now.
- The loan you qualify for may carry stipulations and you’ll now be aware of those up front.
Shop with confidence and have a more “worry free” experience so you can focus on details of the homes you are looking at. After all, there’s still a lot more you’ll need to take care of such as finding a real estate agent, home inspections, appraisals, organizing your move and ensuring the home you purchased is a great investment.
Get preapproved for your home loan means choosing a lender
Agents have relationships that benefit buyers, making the process smoother. The agent knows the performance of the lender and works directly with the lender through the process. A lot of lenders aren’t accessible on the weekends, but the lenders I work with are available to you at any time, as I am. I have 19 years experience as a realtor with John L Scott. Contact me with any questions you have!
