Loan Pre-Approval Importance — The Value of a Pre-Approval

If you're thinking about buying a home, a pre-approval is a fast and simple way to make your home buying experience easier from start to finish.

Pre-approval means you get an approval for a mortgage loan before you make an offer on a home or even find a home you want. (This is in contrast to pre-qualification — a preliminary evaluation of your financial status that does not include a commitment to giving you a loan.) We even put our commitment to the loan in writing, in a pre-approval letter. That means you'll have the benefit of knowing how much home you can afford. In fact, many real estate agents will ask you to get pre-approved before you begin house hunting so they can show you homes that suit your budget.

Get an edge over other buyers

A pre-approval gives you buying power — the ability to make offers, negotiate price and terms, and even sign a contract to buy. It gives you an advantage over other buyers when you make an offer on the home of your dreams, because a pre-approval letter proves to the seller and real estate agent that you're financially ready to buy the home. And that can help make your offer attractive.

It's easy, fast and free.

Once you apply, it will only take 20 minutes or less to get a loan decision. We simply need your income, information about your assets, and Social Security number.

Upon pre-approval, we'll provide you with a pre-approval letter that shows the exact amount you are approved to have financed. Show the letter to sellers and real estate agents — it tells them you're a qualified buyer.

Get a pre-approval decision

Call me at (731) 571-3260 or send me an email at Katiehale3@gmail.com me for a list of some local lenders.

Loan Pre-Qualification Vs. Loan Pre-Approval

Loan pre-qualification is a best guess at your housing and loan affordability. Pre-qualification is typically based upon a verbal conversation between potential borrowers and a lender. It doesn't include formal underwriting or proof of documentation to support the borrower's loan request. A loan pre-qualification is not a commitment to lend. It's only as accurate as the information given, and the lender may change any of the information provided.

Loan pre-approval comes after a formal underwriting of a borrower's loan request. Loan pre-approval is achieved with a complete mortgage loan application and typically includes these basic documents:

• Most recent pay stubs (last 2-4 months) and identification of all employment sources.
• Tax Returns: Current year and past year including all schedules and attachments such as W-2's,1099's and 1098's
• Verification of all assets including banking, investment, and retirement statements.
• Names, addresses, account numbers, and amounts owed to all creditors.
• Proof of down payment including cash or gifts.
• Letter(s) of explanation on credit issues, gaps in employment history, and bankruptcy
• Contact information on all residences within the past two years including names and phone numbers of landlord.

TIP: It's important to not make any changes to your financial condition during the loan process. Avoid any major asset purchases, new debts, or changes in your employment. This will affect your approval rating.