Monday, November 23, 2020 / by Brad Brethouwer
I’m here with Dan Leeder from Intlanta Mortgage to discuss why it’s so important to get pre-approved before beginning the home buying process.
The most obvious reason to get pre-approved is that doing so will tell you how much house you can afford. There’s nothing worse than going out to shop for homes, only to find out that the homes you like are well beyond your means to afford.
Secondly, listing agents often require a pre-approval before making an offer. Again, you don’t want to make an offer on a home just to learn you can’t have it.
“There’s nothing worse than going out to shop for homes, only to find out that the homes you like are well beyond your means to afford.”
Having a pre-approval will strengthen your offer. Sellers who see that you’ve been approved will know that you’ve got the financing necessary to purchase their home.
Now, you might be confused about the difference between a pre-approval and a pre-qualification. A pre-qualification only requires you to give information about your income, debts, and credit issues. From there, you can get a rough look at what kind of loan you’d be approved for. A pre-approval, on the other hand, takes it a step further. A lender will actually pull your credit and put your application through the underwriting system, after which you’ll be fully pre-approved for a home loan.
If you have any questions about pre-approvals or real estate in general, please reach out to me. I can put you in contact with Dan or another great lender who will talk you through the process.