31 Oct Why is a mortgage pre-approval helpful for buyers
Why is a mortgage pre-approval helpful for buyers
A mortgage pre-approval is helpful for buyers because the letter states the buyers finance situation has been reviewed and they are approved to purchase a property for a specific amount.
Who provides this letter?
This is provided by a loan officer. After the buyers credit report has been pulled and examined. Then the loan officer gathers bank statement, taxes, and personal information. In addition, job is verified as well as assets. When that is completed the file goes through desk top underwriting for a complete pre-approval.
Once that is all done the buyer has piece of mind knowing the mortgage is pre-approved and they just need an appraisal and title work to buy a house. Furthermore, it is worth mentioned that your financial situation must not change after your application. An example is buying a car or losing your job.
When is this letter used?
When the buyer finds a house and writes an offer. At that time the offer is presented with the pre-approval to the seller.
Does the seller expect to see this in order to consider the offer?
Literally every seller wants to see a pre-approval letter. That way they know the buyer is capable of purchasing the home. Also, gives they piece of mind to accept the offer and remove it from the market. This is standard practice in the Twin Cities real estate market.
Having loan officer confirm you can secure a mortgage. And for how much you qualify for. Additionally, knowing the payment amount and being sure you are comfortable with it. Those are the stepping stones to starting your home search. Lastly, having that letter than enables you to present an offer.
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If you need further information, please CONTACT US. The Anderson team is committed to providing you with all the information you need to make an informed decision.