You really do need to be pre-approved. We often see buyers drag their feet and wait to speak with a lender longer than they should. Procrastinating on this key step will only cause more stress down the road. It could even cause you to lose your potential dream home! Eek!
So listen up and don’t fall into any of the below traps…
“I’m sure I’ll be approved”
“I have great credit”
“I was approved a few years ago, so it’ll be just the same”
“My lender always works nights and weekends and won’t mind if I ask for my letter at 10pm”
Stop with the excuses, and get your pre-approval letter well in advance!
Otherwise, you may be the person that accidentally finds “the one” at an Open House you just casually dropped by for fun. You’ll inevitably want to put an offer together in five minutes (which of course we can do), but oh wait – you never got around to applying for that pesky pre-approval letter! So the crazy begins! You and your Realtor® will make multiple phone calls trying to get a hold of your lender on a Sunday afternoon/evening (unfortunately they primarily work business hours), and by the time they get back to you on Monday morning, that dream house may very well be under contract. Womp.
But, it doesn’t have to be this way!
As soon as you know you’re going to be in the market to purchase a home, start conversations with a lender! You’ll be glad you did. Not only do you get obtain the powerful pre-approval letter proactively so it’s ready when you need it. But it will also better inform your search!
What about a pre-qualification letter? Isn’t that the same thing?
Not quite. It’s easier to obtain a pre-qualification letter. Think of the pre-qualification letter as the half-way point toward obtaining your pre-approval letter. To be ‘pre-qualified’, a lender doesn’t need to review your credit history or verify any of your income documents (pay stubs, bank statements, tax returns, etc). This letter is provided simply on the basis of your credit score and stated income. To be pre-qualified, the lender has done an initial look at both of these items and nothing more. Obtaining your ‘pre-approval’ means the lender has started verifying your information further and reviewed your credit history. It’s simply a more solid document because additional verification has been completed.
Additionally, to a seller considering your offer, a pre-approval is much more desirable than a pre-qualification.
Still have questions?
Let us get you in touch with a lending professional to answer any and all of your questions- and start that application process 🙂
