The home buying process can be exciting, but also stressful. Getting a mortgage pre-approval prior to home shopping can dramatically increase your odds of acquiring the home you really want.
A mortgage pre-approval should be a home buyer’s first step when purchasing a home. The process is very similar to the actual mortgage process and will, in fact, eliminate a lot of time after you’ve chosen a home.
You will start by completing a mortgage application and preparing the necessary documentation for the lender. The lender will then pull and examine your credit report. Based on the information, the lender will determine how much you qualify for. You will receive a Conditional Commitment, which states the amount of funds that the lender agrees to lend provided that the conditions are met. While a pre-approval is an important first step, it is not the final mortgage approval.
Provides Proof of Your Financial Standing
Having a pre-approval letter to show to real estate agents and sellers when presenting an offer is proof of your financial standing and ability to proceed with the home purchase. During the pre-approval process, the lender will also discuss the most appropriate type of mortgage program that fits the borrower’s needs, whether it is a conventional loan or a government loan.
Top 7 Concerns of Home Buyers – and Barb’s Responses
How Mortgage Pre-approval is Determined
The pre-approval is determined by putting the information given to the lender through automated underwriting. In most cases, the preliminary loan file goes through a pre-processing before the pre-approval is given. Since there is an actual examination of the documentation you provided, you will also receive a list of additional information that may be needed. You can then submit this information while house hunting.
Once you’ve signed an agreement of sale, processing the loan is faster since most of the work for the credit file has been done. The final process involves verifications, ordering and receiving the appraisal, ordering title documents, obtaining insurance, etc. The final underwriting is the last step before the loan file is sent for closing.
The pre-approval process is an important part of a home purchase. Since there is a lot of information involved in obtaining a mortgage, it eliminates many last minute problems that can arise.
More Helpful Information for Home Buyers
My name is Barbara Bottitta and I am a Realtor/Partner with Keller Williams Real Estate and team leader for the Barb Bottitta Team of Lehigh Valley Home Experts. Our team of professionals include a listing and closing specialist so that from the starting line to the dotted line you won’t find another agent or team that provides better service, works harder – or cares more – than my team. My husband, Lou, and I have lived in Lower Macungie for over 30 years; our grown children attended Emmaus High School and we feel fortunate that our grandson is growing up in the Lehigh Valley as well!
Contact me for your Lehigh Valley area questions and real estate needs, and like my Facebook Page for area events, home ownership tips, real estate market updates, tips for home buyers and sellers, and so much more!
There are many great Lehigh Valley area homes for sale. Click here to perform full home search, or if you’re thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today’s market. You may also call me at (610) 398-8408 for a FREE home buying or selling consultation to answer any of your real estate questions.
Why Choose Our Team?
Each member of the team is an expert in their area and contributes to the synergy. Our well tested systems will smooth the way from starting line to contract dotted line. Contact us for Real Estate services that exceed your expectations and help you achieve your home buying and selling goals.
Visit www.LVhomeExpert.com and visit our Facebook Page to view videos of homes for sale in the Lehigh Valley, Pa, client testimonials, and other helpful real estate information!