A
serious home buyer starts his work at a lender’s office and not at an open
house. Consulting a lender and obtaining a pre – approval letter to buy a home is beneficial in many ways. Here are certain things that one needs to
be pre – approved for a mortgage
How
does the process happen?
1. The buyer should discuss loan option with the lender.
2. Secondly, the lender checks the credit balances of the
buyer and alerts him about potential problems
3. Finally, the lender informs the buyer about his
maximum borrowing limit.
4. When this borrowing limit is given as a properly
signed verified document it is called pre - approval
What
is the need of the pre – approval letter?
Having a pre – approval letter will
make the negotiation with the sellers easier. The sellers gain trust if one can
obtain proof of financing through the pre – approval letter
Pre
– qualification Vs Pre – approval
Pre – qualification is the estimate of how much can one afford to spend
on his home. On the other hand, pre – approval is checked by the lender
himself. So, it is an authorized pre – qualification.
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