Mortgage Pre-approval

By: Tyler Fawcett

So, you have decided to purchase a home and you are looking to ease the process as much as possible. This is a natural desire as the process of purchasing a home can be quite complicated and time consuming. One of the easiest ways to streamline the process of purchasing a home is to get pre-approved for your mortgage. Ensuring that this element is taken care of can help to decide the home you are able to purchase. The pre-approval lets you know your fiscal limitations before you begin the search process.

Be careful when talking to your financial institution as there are a few different kinds of approvals that banks will do.

The first is what is known as a quick assessment. This is simply a general estimate of the amount that you "qualify" for. This is not, however the amount that you will definitely get. The quick assessment considers factors such as your down payment amount and credit history. The second kind of approval is the one that you are looking for, the complete pre-approval. This approval takes a much more focused look at your financial standing. It will define exactly how much money is available to you for a mortgage. As you can imagine this has a huge impact on your shopping process.

It is a truth of the real estate world that a buyer with a pre-approved mortgage will hold consideration over one who does not. This is another excellent reason to have the pre-approval. What if there are competing offers on the home? If you have the pre-approval and the other potential buyer does not, your offer will hold more weight. Sellers are always interested in having their home close quickly and without stress, the pre-approval is your assurance to them that this will indeed happen. With your approval in hand you can shop for a home with confidence and financial security.

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