Spring is peak home buying time and all indications point to a busy season already underway. This means that if you're serious about buying a new home you need to set yourself apart from the competition and act fast when you find just the right home.
To do this - get pre-approved before you start home shopping.
A pre-approval letter is obtained from a mortgage company before you have a specific home in mind. You'll provide some basic employment and income information and the bank will run a credit check. Once this is complete you'll receive a pre-approval letter with an amount the bank is committing to loan you.
So what does this mean for you as a buyer?
- Once you find a home you want your offer will be stronger if it comes with a pre-approval letter
- A pre-approval letter will help you with your search as you know how much home you can afford and what your monthly budget would be
Be aware that a pre-qualification letter is not the same as a pre-approval letter. A pre-approval letter is a firm commitment of a willingness to lend up to a certain amount. Be sure to specify what you are looking for when you talk with your lender - and happy home buying!