Importance of a Mortgage Pre-Approval

home loan mortgage pre-approval

The weather is still fairly cold, but the home market is sizzling in and around Charlotte, North Carolina. Translation: There’s never been a better time to shop for a new home than right now. And with that, comes the need for a mortgage loan pre-approval.

Whether you’re a first-time homebuyer or you’re looking to find something larger or even downsize, it’s important to equip yourself with every possible advantage. One of the biggest you’ll find is a pre-approval letter from a certified mortgage lender—ideally, Fairway of the Carolinas. Briefly stated, a pre-approval is a written letter confirming your financial readiness to handle a home mortgage loan. Unlike a pre-qualification, which relies on what you tell a mortgage lender about your financial situation, a pre-approval uses items such as your bank statements, pay stubs and credit reports to verify in writing where you stand.

Following are three reasons to get pre-approved for a home loan:

1. Pre-approval makes you more appealing to the seller

Without a pre-approval letter in hand, any prospective homebuyer is going to be at an immediate disadvantage. That’s because, as busy as the market is right now, there’s almost certainly going to be at least one other buyer who is armed with a pre-approval. Do yourself a favor and get a pre-approval from a mortgage lender before you ever even go house hunting. That being said, it’s not too late for a pre-approval if you’ve already started checking out some homes.

2. Pre-approval enables you to make a good offer quicker

At the rate homes are selling in Charlotte and around the U.S., you simply can’t afford to drag your feet on making an offer. However, it’s unwise to make an offer before you have everything in place for that offer to be as appealing as possible. As soon as you’re pre-approved, you can show your pre-approval letter to sellers and their real estate agents. The pre-approval doesn’t guarantee that a seller will accept your offer, but it does show that you’re a serious, committed buyer. And in a market this competitive, that’s an obvious leg up.

3. Pre-approval tells you how much home you an afford

What’s the point of looking at homes that aren’t in your price range? With a pre-approval, you’ll have a decent idea of how large of a loan you can reasonably secure. The pre-approval letter will state this number, which doesn’t guarantee a loan in this amount but does provide an estimate of how much home you can afford. Don’t want to waste time looking at homes outside of your price range? A pre-approval will simplify your home search and give you a sense of direction you wouldn’t otherwise have.

So what are you waiting on?

Our dedicated loan officers Fairway of the Carolinas can provide you with a quick pre-approval and answer any questions you have about the mortgage process. Any member of our team can get you started down the path toward a wonderful home purchase. You can complete an online mortgage loan application in as few as 10 minutes. Then, securely upload loan documents and monitor your loan’s progress so you always know where things stand. 

So, what are you waiting on? CONTACT US today!

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