Princeton Town Topics – Let’s Talk Real Estate – February 3, 2021
BUYERS BENEFIT FROM MORTGAGE LOAN PRE-APPROVAL
Are you thinking about purchasing a home? Obtaining a mortgage pre-approval from your lender is a crucial step to take before you begin.
A mortgage pre-approval is a statement from a lender indicating that you are qualified for a mortgage loan up to a specific amount. The lender will provide you with a letter verifying the details.
There are several benefits to having a pre-approval letter in hand before you begin your home search, including:
- Provides credibility. Pre-approval identifies you as a qualified buyer. Realtors and sellers will have confidence in your ability to complete a successful home purchase.
- Educates buyers. You’ll have an understanding of what price level of homes you can afford. This will help you have a realistic idea of what houses or areas to search in.
- Faster process. Pre-approval may allow you to move faster on a property, and may speed up the buying process.
Note that pre-approval does not guarantee a final approval. Other factors, such as a low property appraisal report, could affect the final loan approval on a specific property.