Experts consider Mortgage Pre Approval as the verification of the borrower by lender, which determines whether the borrower is eligible for loan or not. Unlike prequalification, Pre Approval Home Loan is not just discussed at a meeting; it requires authentic information with proof, which can take several days. It also helps the lender to know exactly how much he will lend to the borrower.
With the lender approving you for a mortgage, you can search for a home knowing that if you see one you like, in the price range you have already been pre approved for, you can make an offer knowing you already have the mortgage pre approved. This gives you a tremendous advantage when making an offer because there is no "financing condition" attached to the offer. This means that if there are multiple offers on the table that are conditional "upon financing"; the seller is going to be attracted towards yours even if it is slightly less.
A real estate brokers is going to love the fact that you already have pre approval home loan and will work very hard for you to find the home you want! Why? Because they have a qualified buyer with the money in their pocket to buy! All they have to do is find a house that meets your requirements, in the price range you are approved for and they have a deal!
Getting your mortgage approved before you buy has some other advantages. It isn't so stressful. When you can relieve some of the emotional stress that is attached to buying a home, then you are in a much better position to make good sound choices. It also means that you have gone through the process of credit evaluation and your ability to make the monthly mortgage payments, taxes, utilities etc before hand and not at the time of the offer.
When you have a Mortgage Pre Approval, you will know your loan limit. Once you know how much loan you can get; then it is time to find a good home in your price range. After finding the home, there is one last step, which is getting mortgage. For this process, people often engage with Mortgage Brokers who help them seal their deal on best rates available along with their own commission. Conditional Loan Commitment should be issued within a week on a purchase transaction if you had a proper mortgage pre approval. If not then it could take 2 weeks. This whole process of getting a mortgage can cast you up to 30 days at least.
With the lender approving you for a mortgage, you can search for a home knowing that if you see one you like, in the price range you have already been pre approved for, you can make an offer knowing you already have the mortgage pre approved. This gives you a tremendous advantage when making an offer because there is no "financing condition" attached to the offer. This means that if there are multiple offers on the table that are conditional "upon financing"; the seller is going to be attracted towards yours even if it is slightly less.
A real estate brokers is going to love the fact that you already have pre approval home loan and will work very hard for you to find the home you want! Why? Because they have a qualified buyer with the money in their pocket to buy! All they have to do is find a house that meets your requirements, in the price range you are approved for and they have a deal!
Getting your mortgage approved before you buy has some other advantages. It isn't so stressful. When you can relieve some of the emotional stress that is attached to buying a home, then you are in a much better position to make good sound choices. It also means that you have gone through the process of credit evaluation and your ability to make the monthly mortgage payments, taxes, utilities etc before hand and not at the time of the offer.
When you have a Mortgage Pre Approval, you will know your loan limit. Once you know how much loan you can get; then it is time to find a good home in your price range. After finding the home, there is one last step, which is getting mortgage. For this process, people often engage with Mortgage Brokers who help them seal their deal on best rates available along with their own commission. Conditional Loan Commitment should be issued within a week on a purchase transaction if you had a proper mortgage pre approval. If not then it could take 2 weeks. This whole process of getting a mortgage can cast you up to 30 days at least.
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Learn more about Mortgage Pre Approval. Stop by Sam Knight's site where you can find out all about Home Loan Pre Approval and what it can do for you.
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