Why pre-approval is so important
A great first step in home ownership is to get pre-approved for a home loan. This is often the last thing people think of, but it should really be the first. Some people might get confused with pre-qualification letter and pre-approval letter. A buyer who is pre-approved is in a better bargaining position than one who is less prepared, because your file has been viewed by the underwriting department and that gives more assurance on the final approval process. Sellers like to know that the buyer won’t be turned down for the loan. It also shows that you are serious.
Another advantage of getting pre-approved is that it reduces your stress. Once you are pre-approved, you will know, in writing, the price of home that you can afford. All you need to do is pick one out. That’s significantly less stressful than finding the perfect home and making an offer only to find that your loan application is denied.