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Mortgage Loan Pre-approval
Author David Schneider | Dec 09,2007
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Shopping for a mortgage is one of the most stressful things that you can do. You worry about if your credit is good enough, if you will be able to borrow enough for the home you want and if you will be able to get a good deal. However, you can alleviate some of your stress by getting a mortgage loan pre-approval before you start looking for a home.
Mortgage Loan Pre-Approval -- What Is It
A mortgage loan pre-approval is not the same thing as a mortgage pre-qualification. In fact, it is much better. Being pre-approved for a mortgage means that your information has been verified and that you have met the qualifications to be approved for a mortgage. Being pre-qualified for a loan, on the other hand, means that your information has not been verified and that the information you provided indicates that you “should” be approved for a loan. Being pre-qualified doesn’t provide you with any advantage.
Mortgage Loan Pre-Approval -- Using it as a Tool
Getting pre-approved for a mortgage is very important to do, especially in sellers’ markets. You can use your pre-approval letter as a tool to increase your chances that the seller will accept your offer. Some realtors will even require that you have a pre-approval letter before they will show you a home. This is because they don’t want to waste their time showing a house to someone who either is not serious about buying it or who is not able to afford it.
Shopping for a mortgage is one of the most stressful things that you can do. You worry about if your credit is good enough, if you will be able to borrow enough for the home you want and if you will be able to get a good deal. However, you can alleviate some of your stress by getting a mortgage loan pre-approval before you start looking for a home.
Mortgage Loan Pre-Approval -- What Is It
A mortgage loan pre-approval is not the same thing as a mortgage pre-qualification. In fact, it is much better. Being pre-approved for a mortgage means that your information has been verified and that you have met the qualifications to be approved for a mortgage. Being pre-qualified for a loan, on the other hand, means that your information has not been verified and that the information you provided indicates that you “should” be approved for a loan. Being pre-qualified doesn’t provide you with any advantage.
Mortgage Loan Pre-Approval -- Using it as a Tool
Getting pre-approved for a mortgage is very important to do, especially in sellers’ markets. You can use your pre-approval letter as a tool to increase your chances that the seller will accept your offer. Some realtors will even require that you have a pre-approval letter before they will show you a home. This is because they don’t want to waste their time showing a house to someone who either is not serious about buying it or who is not able to afford it. |
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