Looking for a new home can be excited and stressful at the same time, to make the experience less daunting. We like to start with a meet and greet to simply listen to your needs & wants to better educate us on how we can best assist you with your home search.  Next, we will connect you with an experienced lender to help dial in the home loan best for your needs, an get you pre-approved.

What does it mean to be “pre-approved”? 

A mortgage pre-approval is a statement from a lender that says you are qualified to borrow up to a certain amount. Lenders take into consideration the same factors they would consider for a traditional mortgage approval, including your debt-to-income ratio and your credit score. The better your financial situation looks, the more you’ll be pre-approved to borrow. Ideally lenders would like to have a few days at minimum to gather your information and to consult with you regarding loan types, interest rates, payments, and closing costs. 

Why is this piece of paper so key?

Let’s start with saving time and possibly even saving money! When you know how much you can qualify to borrow it translates into how much you can spend, giving you a price range for shopping for a home.  As a result, you won't waste time (and endure unnecessary heartbreak) by shopping in the wrong price range. 

It Makes You a More Attractive Buyer to a seller, as the pre-approval letter is typically required in our area when submitting an offer on a property.  It lets the sellers know you are a serious buyer, as sellers are attracted to an offer with less risk of falling through.  Which in the event of a home inspection that results in requesting repairs or improvement, sellers are more comfortable spending money to address items needing to be repaired. 

Multiple Offers- We continue to experience multiple offer situation on desirable properties, having the Pre-Approval letter is a must and your lender will need a few days to gather and process information. Without the letter it is unlikely your bid would be on the top of the list for a seller.

The Pre-Approval letter lets you know whom you are working with and gives you a handle on the not only the monthly payment based on your offer but also closing costs expense that you can expect. It’s a great comfort to have an experience Realtor and lender to guide you through the home buying process and personalizing the service to meet your needs.  

There is so much to consider when you’re looking to purchase a new home, from location,  to need & wants, to end up with the best home for you and your family. When making one of the most important decisions in your life, we are here to get you off on the right path to homeownership. 

 Roxanne Johnson, Broker, ABR, CRS, GRI