Applying for a loan and obtaining pre-approval with a solid and reputable mortgage lender is extremely advantageous for a buyer before searching for a home. A standard sales contract states that, “Within seven days after acceptance, buyer shall provide seller a letter from lender or mortgage loan broker stating that, based on a review of buyer’s written application and credit report, buyer is pre-qualified or pre-approved for the new loan.”
Pre-approval is such a necessary part of the purchase process that many sellers will require a buyer to present a letter even before the final offer is accepted. Therefore, a smart and serious buyer will always have a pre-approval letter in hand when writing up an offer. The only exception is when a buyer plans to purchase with cash.
Loan pre-approval requires completing a loan application with a mortgage lender. The lender will request permission to pull a credit report, and will request income verifications. When approval is granted, the loan officer will issue a commitment letter subject to a specific interest rate, points, and closing costs. Time limits are usually placed on pre-approval commitments, usually 90 days. A wise seller will ask a buyer for a pre-approval letter from the underwriter of a direct lender when an offer is placed on their home.
The advantages of being pre-approved for a mortgage are as follows. You will be able to:
Call me at (760) 382-1082 and let’s talk further about getting you pre-approved with the very best lender for your needs!