Pre-approval is a smart step for any potential homebuyer to take. You gain instant credibility with sellers as you basically already have the loan. In today’s market, that’s a huge advantage.
Pre-Approved, Not Pre-Qualified
Many borrowers take the step of getting pre-qualified, which is a good step. The difference is that nothing is guaranteed as the information you provide to a lender is not verified and acts only as an estimate of what you can afford.
A pre-approval takes longer and actually involves verification of certain aspects such as employment, assets, income and credit score to name a few items. A pre-approval will typically be good up to a certain loan amount within a certain time frame.
How a Pre-Approval Works to Your Advantage
When a seller sees that you are already pre-approved for a loan, they instantly know that a home sale with you has a much greater likelihood of closing. A lender has already made the comittment to your loan amount, effectively stating that you will be able to close a loan fitting the stated criteria.
In addition, you can worry less about closing the loan within the required time period that the the sale requires because much of the work has already been done.
How We Can Help
You can submit information with us online or call one of our loan officers to begin the pre-approval process. It will be just like any other loan application and you will be asked for certain documentation. A few examples include:
- W-2 forms
- Pay stubs
- Tax returns
- Bank statements
A pre-approval is not a guarantee that your loan will close, but it’s a huge step that every borrower should take when purchasing a home.