The spring buying season is right around the corner - are you prepared? Today, we explain why it's crucial to get pre-approved before beginning your home search.
First, what does it mean to be pre-approved? Essentially, it's when a lender takes your loan application over the telephone, gathers all essential items, validates the items, and then pre-approves your loan based on the items gathered. The process is more intensive than being pre-qualified, which omits the income documentation and asset information.
In order to be pre-approved, you'll need your W2 Forms, tax returns, pay stubs, and your bank statements. The lender may also need to contact your employer for further verification of employment. Sounds like a lot of work - is it worth it?
Getting pre-approved shows sellers that your offer is serious. The fact that a lender has evaluated your finances and has already agreed to underwrite a home loan will make your offer stand out in a multiple offer situation. Sellers like choosing pre-approved buyers because they have confidence that the transaction will go smoothly. Getting pre-approved will also benefit you by giving you a clear picture of your financial options. You'll know what price ranges you can afford, which will help narrow your home search.
If you would like to be pre-approved, so you can start looking at homes with the preparation you need, give us a call or shoot us an email. We work with reputable lenders that would love to help you through the entire process. We look forward to helping you soon!
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