Getting a Pre-Approval Letter Should be the First Step in Homebuying!
Buying a home can be an exciting time for most first-time homebuyers, but many find it to be an overwhelming process, as well. To help smooth the homebuying process, we recommend getting a mortgage pre-approval as the first step to take.
A pre-approval letter can be acquired through your lender indicating that your finances have been approved and you will be allowed to borrow up to a certain amount of money as long as you meet and maintain the lenders’ requirements. In order to obtain a pre-approval letter, you will need to fill out an application form provided by the lender and submit your documents for review. A pre-approval letter does differ from a pre-qualification. While a pre-qualification can give you a rough estimate of how much you can borrow, a pre-approval gives you an idea of the actual amount because the lender has initially reviewed and verified your documents.
Attending Open Houses
To help prevent the continuous spread of COVID-19, many home sellers and realtors may limit the number of in-person open house tour attendees to people who have secured a pre-approval letter, which could potentially get you in through the door.
This is worth considering if you’re shopping for a home in places where COVID-19 restrictions are relaxed enough to allow in-person attendance but still maintaining healthy practices.
A pre-approval sets you apart from other “buyers”
When you work with a buyer’s agent (which is often the best way to go), he or she will initially ask if you have a pre-approval letter. Many times, your Realtor® may refer you to a lender partner or a loan advisor in order to obtain this first. A pre-approval, or even better, an Advance Approval, sets you apart from other buyers. In many cases, sellers will be more willing to negotiate, simply because they know that a lender has already checked and verified your assets and finances.
Secure your Advance Approval with a LendUS Loan Advisor
In normal circumstances, securing a mortgage pre-approval gives you an edge in your homebuying search, just imagine how much more importance it can have during these uncertain times. Speak with a LendUS loan advisor today to learn more about your options.