Why Pre-Approvals Matter

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ryan | September 5, 2017

Being Prepared: Why Pre-approvals Matter

Without a doubt the hottest female comic actor today is Tina Fey.  She first came onto the scene back in the 1990s working with the improve group, The Second City. After leaving The Second City Fey became a sketch artist on NBC’s Saturday Night Live. She remained there for eight years before leaving the group and tackling more work on screen.

Fey is now a regular on television and online commercials but her success was not an accident. She prepared, studied and was ready for the opportunity when it came around. Lack of preparation would lead to gigs going to other people.

That’s why those who are thinking about buying a home work with a lender well before it’s time to shop for a home. Without proper preparation, someone else may get the home instead. Pre-approvals matter because they can be the difference in getting your dream home.

Pre-approval Process

Properly preparing to receive a home loan means having your financials already reviewed and at the mortgage company. By completing a loan application and obtaining a preapproval letter you will be able to make an offer immediately upon finding a property and you will demonstrate to the seller than you already have financing lined up.

What can you expect when getting your preapproval letter?

Your loan officer will ask that you complete a loan application and then provide documentation regarding your income and assets. For a preapproval, you’ll need to provide your most recent pay check stubs covering a 30 day period. Your loan office will also ask for your W2s from the past two years.

Bank statements showing you have enough funds in the bank for the down payment and closing costs will also need to be provided. Your loan officer will also pull a credit report and credit scores. In essence, all your loan application needs at this stage is a property and you nor your seller will have to worry about getting approved.

If the seller looks at two offers and one has a preapproval letter attached and one does not, which offer do you think the seller will take? That’s right- yours. The one with the preapproval letter.

To get started with a mortgage application click the following link: Mortgage App

To learn more about what our process looks like and what makes us different click the following link: Our Process