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Pre Approval for a home… Why do I need this?

Pre Approval... Why do I need this

 

If you are looking to purchase a home in the Atlanta Georgia and surrounding area you may want to know what exactly a pre approval is.  This simply means that you have met or spoken with a loan officer, your credit and income files have been reviewed and the loan officer believes that you can qualify for a given loan amount.  Based on this information, the lender will then provide a pre approval letter, which shows how much home you can purchase.

Getting your pre approval before you begin shopping for a home will help you and the real estate agent exactly how much home you can purchase as well as give you a close proximity of what your monthly housing payments will be.  This will also help you stay within your financial means.

Although not a final loan approval, the pre approval will likely be shown to sellers when bidding for a home.  It demonstrates your ability to purchase and your financial strength.  Owners selling their home do not want to accept an offer that is likely to fail due to lack of ability to obtain financing.  Having this pre approval obviously puts you in a much stronger position to get your dream home under contract.

Going through the pre approval process will allow you to find a house you can actually purchase so you don’t waste time searching for a home you cannot afford.  This will allow your agent to send you homes to look at that are in your price range.  Getting the pre approval also helps the loan process flow much smoother and the loan closes faster since most of the work of gathering documents were taken care of up-front and the loan process explained.

Whether a first time home buyer or purchasing your 5th home having a pre approval letter will create the right expectations for you as a home buyer, your real estate agent and the selling agent as well.  This is a crucial step of the home buying process.

With whom you choose to get pre approved with is also important.  I have seen countless number of times when a buyer obtains a pre approval only to find out they are not.  This is simply a waste of time on everyone’s part.   Be sure to select a reputable lender when getting your pre approval.

If you are in the market and thinking about purchasing a home we would be more than happy to help you through this process and explain how the entire lending process will proceed.  Feel free to  contact us directly at (678) 835-8792 or simply hit the contact button at the top of the page.

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