The Pre-Approval Letter: A Tool to Reduce Pressure
Purchasing a new home can be really exciting regardless of whether it is your first home or the home you’ve always dreamed of. One of the biggest elements of a purchase is knowing what you can afford and having that information available for your agent to find you the perfect home! A first step is to find a lender that you trust and that will help you through the changing mortgage environment of today. One of the biggest tools that lender can give you to help the buying process is a pre-approval letter. Here are a few reasons why it is a good idea to have one in order to speed up the buying process.
- A pre-approval letter will allow your agent to find homes in the price range set by the lender.
- Having a pre-approval letter can really help when it comes to the negotiation aspect of the purchase. The person you're going to make an offer to may choose your offer because they know you’re ready to go. In some cases, even if the offer is lower that others on the table.
- People selling their home want to know and feel better working with potential buyers who have a pre-approval letter because in many cases they are moving too. By having this letter, it helps the process flow much smoother from a lending perspective.
- A pre-approval is something that has been verified based on credit, income, and other data that has been reviewed by an underwriter and approved.
Buying a home can be a long process and they’re many components that go into buying and selling a home. Be prepared and be sure that you complete this as part of your home buying experience. It will reduce pressure and anxiety for the agent, the seller, and most importantly, you.
