SECRET REVALED...Having a pre-approval letter is key to buying your home
You may have heard that it’s important to get pre-approved for a mortgage at the beginning of the homebuying process, but what does that really mean, and why is it so important? Especially in today’s market, with rising home prices and high buyer competition, it’s crucial to have a pre-approval letter prior to making an offer.
That’s where you give the lender some basic paperwork — pay stubs, W2s, bank statements, and permission to pull your credit. The lender hands you a letter stating your maximum purchase price. You can use it to tour homes in your price range and make an offer if you see one you love.
The pre-approval process doesn’t sound very exciting, and it’s not. But it’s a necessary first step.
You don’t want to get your heart set on a certain neighborhood or type of property, just to find out you can’t qualify for that price range.
It’s much better to go into house hunting with realistic expectations.
Freddie Mac explains:“By having a pre-approval letter from your lender, you’re telling the seller that you’re a serious buyer, and you’ve been pre-approved for a mortgage by your lender for a specific dollar amount. In a true bidding war, your offer will likely get dropped if you don’t already have one.”
Give us a call or text and we can hook you up with some great Lenders!