Year ago, buyers didn't worry about financing their home purchase until after they found the home they want to buy. Once they had an accepted offer, they'd shop around for a week or so and then submit a loan application.
Sellers do not want to waste time when selling their home, buyers are now (most of the time) required to put in pre-approval letters with their offers on homes. This makes the buyer seem more stable, it gives greater influence in negotiating a purchase price, and can act quickly when they find a home they really love.
There are 2 parts to mortgage approval: 1) approval of the borrower, and 2) approval of the property. Mortgage pre-approval is a process whereby the borrower is approved for a specific amount of mortgage. This approval is usually only good for a specific amount of time. A property approval is one with satisfactory appraisal and a clear title report. Final mortgage approval also requires a purchase agreement that is signed by the buyer and seller.
If you'd like free advice on getting pre-approved, or for any questions...... give me a call!
See you tomorrow!
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