Almost everyone starts their new search for a home from the comfort of their current one.  By searching on the internet using their phones, most people seem to start their home search in a casual way.  However, what happens when this casual searching results in locating your dream home?  If you love it, then chances are other people do too.  Be ready to make an offer by having a pre-approval letter.

As soon as you decide that you are serious about purchasing a home in Locust Grove or elsewhere, one of the first things you should do, aside from finding a great Realtor® to work with, is get a pre-approval letter from a lender. Here’s why:

  • A pre-approval letter from a lender is necessary for writing an offer for a home.  It tells buyers how much money a mortgage company is willing to lend them for purchasing a home.  It also states what the buyer’s interest rate will be once they purchase a property.
  • Going through the process of getting pre-approved will also help buyers decide what lending program, such as conventional, USDA, or FHA, will work best.   
  • A pre-approval letter shows the sellers of the property that the buyers are serious in their home search and have the ability to purchase the home.  It is included in the written offer for the home.

If a buyer decides that he/she is ready to purchase a home, then the buyer should begin the steps to obtain a pre-approval letter from the mortgage lender.  You never know if the perfect home for you will be the first home you tour or the tenth, so having that approval in place allows the buyers to write an offer immediately on a property as soon as they see it.  Unlike a pre-qualification letter, getting pre-approved for a loan can be up to a week long process and buyers need to supply the mortgage lender with various documents such as bank statements, W2s, and other financial information. Sometimes these documents can take some time to locate.  

If you need recommendations for a mortgage lender, ask your Realtor®.  It is okay to talk with several mortgage lenders before deciding on the lender that has the best mortgage program for you. Your mortgage lender can also make any suggestions to help you improve your credit score or provide you with some guidance on other home buying financial matter.