Importance of Financing Pre-Approval

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So, you want to buy a home and you keep hearing the same two commandments. 

1. Get a real estate professional to help you.

2. Get a pre-approval from a lender. 

Well, you have found your real estate professional - Annette Lawrence, Remax Realtec Group! Now you need the pre-approval letter!

As my father used to say, “Proper planning prevents poor performance.” This is sage advice for home buyers who need to lay the necessary groundwork to buy the home of their dreams.

Without proper preparation, many buyers get lulled into the mistaken notion that if a lender pre-qualifies them for a mortgage this means that they have been pre-approved for a home loan. If you are looking to make a home purchase soon, now is the time to bring yourself up to speed on how these terms differ – and why a misunderstanding could mean losing out on the home of your dreams.

Get yourself pre-approved before even looking at homes. The first step will be to complete an official loan application. The second step will be to promptly supply the lender with the requested necessary documentation which will enable the lender to verify the information on your loan application. From this, the lender can tell you the specific mortgage amount for which you are approved. You'll also have a better idea of the interest rate you will be charged on the loan and, in some cases, you might be able to lock in a specific rate.

With pre-approval, you will receive a conditional commitment in writing for an exact loan amount, allowing you to start looking for a home with confidence at or below the pre-approved amount. More importantly, this puts you at an advantage when making an offer as the seller will know you are a serious buyer and will know you have the ability to purchase.

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It is of utmost importance to talk to a lender local to the property. It is also important in today’s current competitive market to use a lender that states they have the ability to close your loan in 30 days even if you want to close on your home purchase in 40 days. These two criteria will result in you closing ON TIME and ENSURING YOU GET THE HOME OF YOUR DREAMS.