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Get Pre Approved Before You Start Your Home Search
When you begin your home search, it's likely that you'll start browsing homes online. But, when you are serious and want to start going through them, you will likely have an Agent ask you if you are pre-approved for a loan. Why is that? There are several reasons that you, as a buyer, would want to get pre-approved, and it is always going to be in your best interest to take this step BEFORE you start your home search.
Some buyers find it intimidating to contact the bank and start this process, but I assure you, it is worth the time and it really is not all that complicated or scary! Plus, starting your home search before you get pre-approved is like going to Costco with out your wallet! Waste of time, right?
Read on and you'll understand what I mean....
So, for starters, let me explain what a mortgage pre-approval is. A mortgage pre-approval is a written acknowledgement from a lender, bank, broker or credit union that you, the borrower, can purchase a home up to a certian price. This figure would be based on information you supplied at the time of your credit application with your income, debts, assets, credit and employment history. Ok, so now that we understand what a pre-approval is, let's take a look at WHY your Agent always want you get your pre-approval:
1) A pre-approval letter is stronger than a "pre-qualification" letter- A pre-qualification letter is NOT the same thing as a pre-approval! A pre-qualification letter is typically the lender's educated guess on what you can afford but it is not investigated and verified using your documentation like the pre-approval letter. Because leders investigate your credit worthiness, debts and income prior to issuing a pre-approval, the pre-approval us much more accurate than a pre-qualification.
Sheena Rahman is a Northwest Ohio Native, even though she has lived in a few other states, there is just no place like home in Ohio! Her goal is to help you with the process of buying or selling. She ....
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