The Value of Being Pre-Approved

It's exciting when you decide to start looking for a home. Going online or open houses figuring out what type of home you like.
In the midst of the excitement, buyers may forget one very important step, getting pre-approved. It lets you know where you stand on your price point to buy a home.

Please don't confuse "pre-qualify" with "pre-approval". When a lender pre-qualifies someone its based on verbal info given by the potential borrower to the lender, however a pre-approval goes deeper and involves a more thorough look into your income and expenses, including a look at your credit score.

My lender for example will ask for 2 years tax returns, 2 months of bank statements and the last 3 pay stubs (if self employed profit/loss statements). Along with pulling your credit, this will give my lender a complete picture of what you qualify for in a home purchase. Also, more importantly you will know approximately how much your monthly mortgage payment will be.

Please keep in mind that most if not all sellers will require a pre-approval letter along with your offer.

Bottom line: Its extremely important to be pre-approved not only to submit an offer, but also to know what you qualify for, the last thing you want is to start your home search, fall in love with the home of your dreams, scramble for a pre-approval only to find out you may not qualify for that home. We at Precision Real Estate Group want to make sure that doesn't happen and always here to help with every step of the process, whether you are looking now or later.