Putting together your offer package requires your broker to give the sellers and their agent a clear picture of how prepared and qualified you are to complete the purchase of their home. Part of that includes showing that are working to secure financing for the mortgage. Should you find yourself in a multiple offer situation, a strong financial package will be key to successfully competing against other bids.
Pre-Qualification is a quick and easy way to see how much you might be able to borrow in order to purchase a home. If you’re just looking for a ballpark figure of your price range, a pre-qualification call may be sufficient. Pre-Qualification can be done by phone or online and requires no paperwork. You simply let you prospective lender know your current income and debts, and how much down payment you can afford to make. The lender will not commit to allow you to borrow, but he or she can give you an idea of how much house you can afford.
When you are preparing to actually make an offer on a home, you’ll want to be pre-approved. The pre-approval process requires you to submit your financial records and have the lender verify all of your information. He or she may come back to you for further information or clarification during this time. The process will take a couple of weeks, but at the end you will have a commitment from the lender that will support your offer.
Check out our handy checklist for some of the specific documents you will need to provide.
Why Get Pre-Approved?
Besides helping you more accurately determine how much home you can afford, pre-approval lets sellers know that you are not just a looky-loo -- you are ready and able to purchase their home. In addition, if time is a factor leading to closing, a pre-approval will help you get your loan processed more quickly, shortening the time in escrow.
Not sure where or how to start the pre-approval process? Don’t worry.
A pre-approval is an important component of creating a strong purchase offer. Need more information or a referral to a mortgage professional? Let us help you get started. We have trusted lenders on our team who are ready to help you with every step of your mortgage process.