The Pre Approval Process

Getting preapproved is an important step in the mortgage process. We believe getting preapproved should not be burdensome. We pride ourselves on issuing same-day preapprovals! Once we receive your documents, we can get the ball rolling and get you preapproved.

Why You Should Get Pre Approved Before Starting Your Home Search

Getting preapproved before starting your home search offers you several important benefits and can help streamline your homebuying journey. 

First off, it's important to understand the difference between a preapproval and a prequalification. Oftentimes, buyers believe that a preapproval and a prequalification are the same thing, when in fact they are different. A prequalification is an informal review of your financial status which gives you a ballpark range of how much home you can afford. A preapproval is a formal process in which  a lender will review your paystubs, W-2's, and bank statements to verify your income and assets. They will also pull a credit report to ensure you have a qualifying credit score. You will be issued a formal preapproval letter that includes loan terms as well as any contingencies required for full approval. 

Expert Advice

Buyers will sometimes begin their home search before getting preapproved and find a house they love. When a lender tells them what the monthly payment would be, they realize that the home they love isn't in their price range. When they start looking at homes that fit their budget, they cannot find a house that they love as much as the one out of their price range. 

Looking at homes without a clear understanding of your budget can sometimes lead to disappointment. Get preapproved before starting your home search so that when you do find the home you love you are confident that it fits your budget. 

With a preapproval, you will gain a clear understanding of your budget and how much home you can buy. Sometimes, your approval amount and the amount you are comfortable paying are two different things. Getting preapproved and understanding your price range will save you time by eliminating homes outside of your budget. This will allow you to focus your time and energy on homes that fit your budget. 

When you make an offer on a home, your offer will be stronger with a preapproval letter than offers without one. Sellers will take your offer more seriously, and they will feel more comfortable accepting your offer knowing that you are preapproved buyer. 

How I Can Help You

When it comes time to purchase a home or refinance an existing loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world, but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.