Home Buyer Representation

The Second Step: Obtain a Loan Pre-Approval

There is a big difference between a "pre-qualification" and a "home loan pre-approval". A pre-qualification usually takes only a few minutes over the phone and determines, based on the information you provide, what price of a home you could most likely qualify for. It is very preliminary and does not commit the lender to approve you for a mortgage.

"Pre-approval" is no kidding around. The bank will check your credit history, employment information, your investments and your assets and liabilities - everything they check when you apply for a mortgage. Everything except for the property you're going to buy. Once you find the property you want to buy, you will then need an appraisal and a title search. Because some banks charge for pre-approval, make sure you're really going to buy a house in the relatively near future.

Why you should obtain a mortgage loan pre-approval:

  • A loan pre-approval establishes the right price range to look in. We won't be showing you homes above what you can afford. This prevents the disappointment of seeing homes more expensive than you can realize, only to have to "settle" for something less

  • When we do find the home of your choice, you will be in a stronger negotiating position with the seller. You will have the bargaining power equal to a "cash" buyer by knowing your loan is a certainty

  • It facilitates the closing process by allowing you to close as soon as the inspections, appraisal and title work is completed. Time and stress won't be expended trying to get your loan through at the same time as you are arranging to move

  • Provides you with more confidence to purchase as soon as you locate the right property

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