Facts About Mortgage Loan Offers And Pre Approval

Facts About Mortgage Loan Offers And Pre Approval

Facts About Mortgage Loan Offers And Pre-approval
Although many of​ the​ 'pre-approval' letters you​ get through the​ post are worthless,​ there are types of​ pre-approval from lenders that can help you​ greatly when buying a​ house .​
If you​ can get pre-approval on​ your mortgage loan,​ then you​ will find it​ much easier to​ get the​ house you​ want quickly .​
If you​ want to​ know more about pre-approval for mortgage loans,​ then here are some facts to​ help you​ out.
Apply before you​ buy
Although many people used to​ look at​ homes before applying for a​ mortgage loan,​ nowadays it​ is​ critical that you​ apply for the​ mortgage loan first .​
This will allow you​ to​ know exactly how much you​ can afford to​ spend on​ a​ house,​ and so find the​ property you​ want much more quickly and easily.
Pre-approval and pre-qualification
Although you​ might have a​ great credit rating and a​ good job and know you​ will be accepted for a​ mortgage,​ it​ is​ much better to​ apply and get pre-approval than to​ simply be pre-qualified .​
Pre-qualified simply means you​ are eligible to​ apply for a​ mortgage loan,​ but does not guarantee the​ amount that you​ will receive .​
However,​ getting a​ pre-approval letter will tell you​ exactly how much you​ will be allowed to​ borrow .​
As long as​ your circumstances do not change,​ this amount is​ guaranteed .​
Getting pre-approval
To get pre-approval,​ you​ simply need to​ find the​ right lender for your needs and then speak to​ them about pre-approval .​
They will perform the​ necessary checks and give you​ a​ pre-approval letter,​ after which you​ can start searching for your dream home.
Looking at​ the​ right homes
If you​ have pre-approval,​ then you​ know exactly how much you​ can afford to​ spend on​ a​ property,​ and so can narrow your search down to​ homes within this price bracket .​
This will help you​ to​ find a​ property to​ match your needs much more quickly,​ and so make buying easier.
More negotiating power
If you​ have pre-approval on​ your mortgage loan,​ then you​ will be seen in​ the​ same way as​ a​ cash buyer .​
You already have the​ funds in​ place,​ so the​ seller is​ more likely to​ accept an​ offer immediately,​ even if​ it​ is​ below the​ price estimate .​
This is​ because they can be more certain that their house is​ sold,​ and so take it​ off the​ market pending the​ close of​ sale.
Quicker sale closing
One of​ the​ lengthiest parts of​ house buying and selling is​ the​ closing of​ the​ sale .​
If you​ have agreed to​ buy a​ house but do not have a​ mortgage in​ place,​ then it​ can take time to​ arrange the​ funds,​ and you​ might even find that you​ cannot get the​ funds you​ need .​
However,​ if​ you​ have pre-approval the​ funds are already guaranteed,​ and you​ can push through the​ transaction much more quickly .​
This will make buying a​ house much less stressful,​ and help you​ to​ get the​ home you​ really want.

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