Getting Pre Approved For A Mortgage Makes Buying Easy

Getting Pre-Approved for a​ Mortgage Makes Buying Easy
Whether buying or​ selling a​ home,​ the​ real estate transaction process can be seriously stressful .​
Hey,​ no pain,​ no gain .​
Getting pre-approved for a​ mortgage can seriously reduce stress levels .​
Lender Approval
Many people make the​ mistake of​ going house hunting without knowing exactly how a​ large a​ mortgage they can get .​
This leads to​ incredible frustration when a​ dream home is​ found,​ but you​ can’t get a​ loan .​
For some shoppers,​ the​ frustration and stress leads them to​ throw their arms in​ the​ air and give up on​ the​ process .​
While an​ understandable reaction,​ the​ stress and frustration can be greatly reduced by getting pre-approved for a​ mortgage loan.
Getting pre-approved by a​ lender involves going through the​ full mortgage application process .​
You are going to​ fill out all the​ forms,​ provide tax returns or​ salary verification,​ have your credit run and so on​ .​
The bank will do a​ full analysis regarding whether you​ are mortgage worthy .​
It will also lay out the​ specific requirements it​ expects you​ to​ meet including the​ down payment amount and the​ specifications your potential home must meet .​
To this end,​ the​ pre-approval process is​ always contingent on​ the​ appraised price of​ the​ prospective home and any defects found in​ the​ home inspection .​
Once a​ lender approves you​ for a​ loan,​ a​ magical thing happens .​
The lender will issue a​ pre-approval letter .​
The lender letter indicates the​ bank has approved you​ for a​ loan,​ the​ specific amount of​ the​ loan and often how long the​ pre-approval will last .​
The pre-approval letter is​ the​ golden egg in​ the​ home purchasing process .​
It gives you​ a​ significant advantage over other people bidding on​ the​ same home .​
Imagine you​ are a​ seller who receives to​ bids within a​ few thousand dollars of​ each other .​
One bid has a​ pre-approval letter from the​ lender and the​ other does not .​
Which are you​ going to​ choose?
Getting pre-approved also has additional benefits .​
As you​ go through the​ process,​ the​ bank may alert you​ to​ problems .​
You can then go ahead and take the​ necessary steps to​ fix the​ loans .​
Compare this to​ trying to​ get a​ loan while in​ escrow .​
You are under a​ lot of​ pressure to​ get the​ loan in​ a​ thirty or​ sixty day period .​
If you​ fail to​ get the​ loan,​ you​ lose your good faith deposit,​ which is​ often thousands of​ dollars .​
Obviously,​ that is​ a​ disaster.
Whenever possible,​ get pre-approved for a​ mortgage before shopping for a​ home .​
It will save untold amounts of​ stress and make the​ buying process much easier.

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