Buying a home can be an exciting time for most first-time homebuyers, but many find it to be an overwhelming process, as well. To help smooth the homebuying process, we recommend getting a mortgage pre-approval as the first step to take.
A pre-approval letter can be acquired through your lender indicating that your finances have been approved and you will be allowed to borrow up to a certain amount of money as long as you meet and maintain the lenders’ requirements. In order to obtain a pre-approval letter, you will need to fill out an application form provided by the lender and submit your documents for review. A pre-approval letter does differ from a pre-qualification. While a pre-qualification can give you a rough estimate of how much you can borrow, a pre-approval gives you an idea of the actual amount because the lender has initially reviewed and verified your documents.
Attending Open Houses
To help prevent the continuous spread of COVID-19, many home sellers and realtors may limit the number of in-person open house tour attendees to people who have secured a pre-approval letter, which could potentially get you in through the door.
This is worth considering if you’re shopping for a home in places where COVID-19 restrictions are relaxed enough to allow in-person attendance but still maintaining healthy practices.
A pre-approval sets you apart from other “buyers”
When you work with a buyer’s agent (which is often the best way to go), he or she will initially ask if you have a pre-approval letter. Many times, your Realtor® may refer you to a lend partner or a loan advisor in order to obtain this first. A pre-approval, or even better, an Advance Approval, sets you apart from other buyers. In many cases, sellers will be more willing to negotiate, simply because they know that a lender has already checked and verified your assets and finances.
Secure your Advance Approval with an AEM Loan Advisor
In normal circumstances, securing a mortgage pre-approval gives you an edge in your homebuying search, just imagine how much more importance it can have during these uncertain times. Speak with an American Eagle Mortgage loan advisor today to learn more about your options.