Want to increase the likelihood that your home offer will be accepted by the seller? When you are planning to buy a home, it is important that you go through the process to get pre-approved before you make an offer on a property. In this article we will discuss What is Pre-Approval and Why Do You Need It? Here are a few things that you need to know about pre-approval:
What is Mortgage Pre-Approval?
During the pre-approval process, a lender will review your financial situation to determine if you will qualify for a home loan. Then, you will receive a letter written on your behalf, stating that the lender has reviewed your finances and they are willing to loan you the amount of money needed to buy a house.
For most buyers, it is beneficial to get pre-approved before starting the process to look for a home. If you have any questions about pre-approvals, then you can talk with your Atlanta real estate agent and your lending company.
Keep in mind that pre-approval and pre-qualification are two different things. So, you need to make sure that you go through the pre-approval process, because it is much more thorough and results in the letter of pre-approval that you need for your offers.
Why is Pre-Approval Important?
There are several advantages to pre-approval when you are buying a home. These are some of the benefits that you will receive:
- Sellers will see that you are a serious buyer, increasing the likelihood that they will accept your offer. In some situations, a seller might reject an offer based on the fact that the buyer doesn’t have pre-approval, because there is no proof of the person’s ability to pay for the home.
- You will be able to plan your finances in advance, because you will know how big your home loan can be. The pre-approval process will give the lender the opportunity to discuss details with you ahead of time, so that you can find a property that fits within your budget.
- If there are any problems with your credit, then the lender will be able to give you the heads up about the changes that need to be made. As a result, you can fix your credit so that you are ready to be approved for a mortgage when it is time to buy a home.
- When you find the right home, then you will be able to make an offer more quickly because your will already have the pre-approval letter in-hand.
- Pre-approval gives you time to shop around, in order to find a lender that will offer the best loan terms. As a result, you can choose the right mortgage selection to meet your individual needs.
Are you ready to learn more about how you can increase the likelihood of your offer being accepted by the seller? Contact us at Duffy Realty of Atlanta, and we will gladly assist you with the entire home-buying process. Call our office anytime for more information: (678) 318-1700. We hope that you enjoyed our article on What is Pre-Approval and Why Do You Need It?