If you are thinking about buying a new home in the near future, you may already be searching online to get a feel for the different types of homes available in the local area. You may have reviewed your budget, and you may have a fair idea about a sales price that is comfortable for you to afford. While you may feel as though you have taken the preliminary steps necessary to prepare yourself to buy a home, it is important that you also get a mortgage pre-qualification letter for your financing before you starting hunting for your home.
The Importance of a Pre-Qualification Letter
A mortgage pre-qualification letter is issued to a loan applicant after he or she has passed through a preliminary credit review process. Most of these letters state that the individual is pre-qualified for a property with a maximum sales price, and it is contingent on the loan applicant providing supporting documentation, such as tax returns and bank statements. This letter gives you a better idea about what it will take for you to get final loan approval and what loan amount you may qualify for. The letter is also provided to a seller, and it gives the seller the confidence that comes with knowing that you are a qualified buyer. When a seller has an offer from a buyer with a letter and another offer from one without a letter, there is a good chance that the seller will opt for a buyer who is already pre-qualified for financing.
How to Get Your Pre-Approval Letter
As you can see, there are several reasons why it is important to get pre-qualified for your mortgage financing. Getting a pre-approval is generally a straightforward process, but it can seem intimidating. You will need to sign an authorization for the lender to pull your credit report. You’ll typically be able to receive a pre-qualification letter within a day or two.
When you have plans to purchase a new home, you likely will need to apply for financing in order to complete your plans. Getting a pre-qualification letter up-front can help you in a number of ways, and you can easily take the steps necessary to get pre-approved for your mortgage. To get started, we suggest you contact our preferred Senior Mortgage Loan Officer: Janice Hernandez