Pre-Approved Mortgage Loan
House hunting? Be prepared with a pre-approved mortgage loan.
Most homebuyers miss out on one of the most important steps in the home buying process. No matter what type of real estate market, the experts at John L. Scott, including top agent, Judy Gratton suggest it’s a good idea to be pre-approved for a mortgage loan before the house hunting begins.
A pre-approved mortgage loan is a lender's actual commitment to lend to the homebuyer, with specifications on the exact loan amount. To become pre-approved, consumers must provide personal financial information, such as income, debts and assets, to an underwriter. After a homebuyer applies for the loan, the lender will most likely approve the application with certain caveats. As the lender is committing to the loan amount and interest rate up front, the buyer knows they have their financing in place before begin shopping for a home. Advantages of having a pre-approved mortgage loan include:
Establishing an advantage in a competitive market. A pre-approval letter gives the homebuyer an edge in a multi-offer situation. Sellers prefer working with potential buyers who are pre-approved; they do not want a deal to fall through because the purchaser cannot get sufficient financing. An offer with a mortgage pre-approval letter carries far more weight than an offer with only a pre-qualification letter or no letter at all. In fact, sellers often accept offers of lower dollar amounts from pre-approved buyers over buyers who have not been, despite higher offers. With pre-approval, the home sellers are more confident the deal will go smoothly.
Finding the best possible type of loan. Working with a mortgage agent before looking at houses gives the homebuyer plenty of time to decide what category of mortgage product works best for his or her financial goals. Once the buyer decides on the kind of loan he or she wants and has been pre-approved for it, the homebuyer can then focus on finding their dream home.
Establishing the price range. Getting pre-approved for a mortgage enables the homebuyer to determine, prior to house hunting, how much money he or she qualifies for, thereby establishing a price range. The real estate sales associate and homebuyer can then focus on looking at appropriate homes.
Seeking comfort with the loan amount. By taking the time to seek pre-approval, the homebuyer selects a comfortable loan amount. In many cases, buyers may qualify for mortgages that are more expensive than what they feel comfortable committing to for the long-term, merely because it works on paper. It is important for a buyer to purchase a home they can afford!
Once you are pre-approved give Judy a call. 206-276-3289
Most homebuyers miss out on one of the most important steps in the home buying process. No matter what type of real estate market, the experts at John L. Scott, including top agent, Judy Gratton suggest it’s a good idea to be pre-approved for a mortgage loan before the house hunting begins.
A pre-approved mortgage loan is a lender's actual commitment to lend to the homebuyer, with specifications on the exact loan amount. To become pre-approved, consumers must provide personal financial information, such as income, debts and assets, to an underwriter. After a homebuyer applies for the loan, the lender will most likely approve the application with certain caveats. As the lender is committing to the loan amount and interest rate up front, the buyer knows they have their financing in place before begin shopping for a home. Advantages of having a pre-approved mortgage loan include:
Establishing an advantage in a competitive market. A pre-approval letter gives the homebuyer an edge in a multi-offer situation. Sellers prefer working with potential buyers who are pre-approved; they do not want a deal to fall through because the purchaser cannot get sufficient financing. An offer with a mortgage pre-approval letter carries far more weight than an offer with only a pre-qualification letter or no letter at all. In fact, sellers often accept offers of lower dollar amounts from pre-approved buyers over buyers who have not been, despite higher offers. With pre-approval, the home sellers are more confident the deal will go smoothly.
Finding the best possible type of loan. Working with a mortgage agent before looking at houses gives the homebuyer plenty of time to decide what category of mortgage product works best for his or her financial goals. Once the buyer decides on the kind of loan he or she wants and has been pre-approved for it, the homebuyer can then focus on finding their dream home.
Establishing the price range. Getting pre-approved for a mortgage enables the homebuyer to determine, prior to house hunting, how much money he or she qualifies for, thereby establishing a price range. The real estate sales associate and homebuyer can then focus on looking at appropriate homes.
Seeking comfort with the loan amount. By taking the time to seek pre-approval, the homebuyer selects a comfortable loan amount. In many cases, buyers may qualify for mortgages that are more expensive than what they feel comfortable committing to for the long-term, merely because it works on paper. It is important for a buyer to purchase a home they can afford!
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