Back before the big boom of 2020 and 2021 real estate, getting pre-approved was a *Smart* decision, but it wasn’t always necessary. Now, things have changed. Check out why Pre-approval is no longer optional in the Home-Buying Process
But why does a pre approval make a difference?
To put it simply, pre-approval is as close as you can get to confirming your creditworthiness without having an actual purchase contract in place between buyer and seller.
And when it’s time to make an offer on your dream house, especially in this competitive market where you might want to stand out among other potential buyers, a seller is MUCH more likely to consider you a serious buyer because you have had your finances and creditworthiness verified in advance!
So what can you expect when looking to get pre-approved?
01. You will complete a mortgage application, then the lender will verify the information you provide with documentation (such as IDs, proof of income, etc).
02. The lender will run a credit check to make sure you have all of your financial ducks in a row and have a “safe” debt-to-income ratio.
03. If you’re pre-approved, you’ll receive your pre-approval letter. This is simply an offer (not a commitment) to lend you a specific amount— these letters are typically good for 90 days.
Getting preapproved is a smart step to take when you are ready to put in an offer on a home. It shows sellers that you’re a serious homebuyer and that you can secure a mortgage – which makes it more likely that you’ll complete your purchase of the home.
Need help getting pre-approved with an Atlanta-savvy real estate agent by your side to guide you through thick and thin? Click here to schedule a meeting to talk about lenders, closing costs, and your needs!