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How to Get a Mortgage Pre-Approval Letter and Its Importance

approvalIf you are considering buying a new home in the future, you are most likely already searching online for the different types of homes that are available in your area. You have probably reviewed your budget, and have a good idea about the price of a home you can comfortably afford. Even though you may have made the preliminary steps to buy a home, it is important that you get a mortgage pre-approval letter for your financing before you look for a home.

Pre-Approval Letters Importance

The pre-approval letter is given to a loan applicant after they have passed through the preliminary credit review process. Most pre-approval letters state that the individual is pre-qualified to purchase a property and what the maximum sales price would be. It will be contingent with the loan applicant providing support documentation like tax returns and bank statements. This letter gives you the information about what it will take for you to get the final approval and the amount of the loan you will qualify for.  The letter is provided to a seller and shows the seller that you are qualified to make an offer on a home. If a seller were to receive an offer from a buyer with a letter and one from a buyer without a letter, the chances that the seller would opt for the buyer who is pre-qualified fir financing is better.

How to Get a Pre-Approval Letterapproval2

As stated you can see why it is important for you to be pre-qualified for your mortgage financing.  The process in getting pre-approved is generally pretty straight forward, but it can feel intimidating. The first step is completing a loan application, this may be done either in person or online with your Mortgage Company or lender.  You will also be required to sign an authorization for the lender to pull your credit report. After completing these steps you typically should receive your pre-approval letter in a couple of days.

When purchasing a new home you will most of the time have to apply for financing to purchase a home. Having a pre-approval letter up front will help you on a number of ways, and you can take the necessary steps for you to be pre-approved. You just simply need to contact a Mortgage Company or lender to get the process going.

moo thorpe headshotWhether you are selling your home, or buying a home, I can help you with your endeavor. Please contact me at 505.780.0310, or email me at moo@moothorpe.com and I will be happy to assist you.

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