What to Know Before the Pre-Approval Process

Take the steps required in order to get pre-approved so you don’t miss out on the dream house you have had your eye on for some time. 

Before you start looking for the house of your dreams you need to get pre-approved so that you don’t lose out on your perfect house. Getting pre-approved is sitting with your lender, filling out all of the tedious paperwork, and getting, well, pre-approved for a mortgage within a certain financial range. That way, you know what you can afford and only make offers on that which gives you the best opportunity for your financial dream home.

Pre-approval v. Pre-qualification

Make sure that you get pre-approved, not pre-qualified. Pre-qualification is just the process that uses unverified information to see if you even can qualify for a mortgage. The pre-approval process uses verified documents to obtain a mortgage amount. It also lets sellers know that you are serious about buying.

Benefits of Getting Pre-Approved

  • Sellers will take your offer more seriously: Whether you get that home you’ve had your eye on depends ultimately on the sellers. If they see you have been pre-approved they know you are serious about your offer and will be more inclined to accept it.
  • You know exactly what you can and can’t afford: Instead of wasting your time looking at houses that are potentially above your price range, you know exactly what to look for. A word to the wise: Don’t submit your pre-approval letter with your offer. If the sellers know you can afford much more than you’re offering they may use that against you.
  • Eliminate pre-closing surprises: Because you already dealt with all the paperwork most people dread at closing time, you are much less likely to be surprised by anything during the closing process.

The pre-approval process does not have to be confusing. Contact Dean Rathbun when it comes time to finding the perfect plan of action to buy your home. We are happy to help you!