Why Get Pre-Approved?
1. Pre-approval acts as a dry run of the loan application process. The mortgage pre-approval process differs from a pre-qualification process in that your mortgage lender may proceed in running your credit report and will request documentation from you to be submitted to the Underwriter. Once the Underwriter has reviewed and approved your file, you"ll receive a loan commitment letter. This letter holds much more weight than a loan pre-qualification letter as it shows the Seller that you've undergone a thorough review and you're conditionally approved to purchase a home.
2. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you in your new home.
3. We're still in what's known as a "seller's market". Simply stated, we have more buyers looking for homes than we have inventory of homes to be purchased. In some price points, this can often create a multiple offer situation on a single listing! In order to be able to compete with other buyers and submit a timely offer, having already undergone the pre-approval process will be key. Being able to provide the seller with a conditional approval letter could very well place your offer in #1 position over the others!