Pre-approved not pre-qualified​

Why pre-qualifications are meaningless

Pre-Qualification is an informal way to see how much you might be able to borrow for your new home purchase. You may easily “pre-qualified” over the phone or on line with no paperwork by simply telling a lender your income, your long-term debts, and what your down payment will be. Based on this unverified information a lender will not make a commitment to lend to you, but you will have a ballpark figure for how much you can spend on a house.

Pre-approval is a lender’s actual commitment to lend to you. This process involves assembling and submitting the documentation as per Loan application checklist and running a credit report with all 3 bureaus (tri-merged report). This may take up to a couple of days.

Advantages of  being  PRE-APPROVED

Being pre-approved not only provides you with a definite idea of what you can afford but also lets sellers and their agents know that you are a serious and prepared buyer and puts you in a much better negotiation position. Aside from documenting your financial ability to close on a transaction, pre-approval shortens the time needed to close on a loan, and makes you a more attractive buyer for sellers and their agents who want a quick and smooth transaction.

Not being pre-approved may be costly and disappointing. In the remote case that an agent takes you out to show you homes without being pre-approved (an experienced realtor won’t do it) and that you find a home you like and decide to make an offer you will find that the listing agent (agent representing the seller) will ask for a lender pre-approval letter, verification of funds to close, and even a copy of your FICO scores.  Sometimes you may even be asked to allow another lender, usually a lender the listing agent trusts, to review your loan documentation to make sure you will qualify for the intended financing.

With all this, it makes sense to get pre-approved, doesn’t it?

WHERE or HOW do you get PRE-APPROVED?

We have an experienced team of licensed mortgage loan originator ready to assist you in getting pre-approved.

Not only are we  approved with lenders who offer the most competitive interest rates in the industry but we are also continuously  on the lookout for lenders who offer buyer’s grants  for your closing costs or towards your down payment.

Often times most of your typical banks don’t offer these grants.

Give us a call, text, or email us to get your pre-approval started today.

© 2019 by Lighthouse Real Estate DRE: 01036990     NMLS: 356070

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