pre-approved for a loan before you go shopping for a home. This process facilitates everything.
Getting Pre-Qualified by a Lender?
The pre-qualification process can be completed fairly quickly, based on
less information than is required for getting pre-approved. While it is fast and it does help, a pre-qualification
letter is an opinion from a lender of the maximum amount of real estate for
which you can qualify. In a competitive
seller’s market, an offer from a buyer with a pre-qualification letter could
lose out to a person who is pre-approved.
Get Pre-Approved by a Lender.
There are several benefits to going the extra mile and getting a
pre-approval letter. First of all, you
will know exactly how much real estate you can afford. When you find a property you want to buy,
your offer will be better positioned than someone less prepared. Finally, being pre-approved is more
efficient; it reduces the amount of time it will take your lender to fund your
loan. Be prepared to provide
comprehensive documentation, which the lender may independently verify, including
but not limited to:
assets and liabilities