Why Get Pre-Approved Before You Buy A Home?
If you are serious about buying a home, it is very important to get approved for a home loan -- even before you make a purchase offer!
This article will save you countless hours of wasted time, and the stress of wondering whether or not you qualify for a loan.
Imagine for a moment that you are paying cash for your new home . just reach into your pocket and pull out thousands of dollars. Surely the seller would give you an incredible deal after seeing all that money.
Our pre-approved loans are not quite the same as cash . but they come pretty close. In fact, research shows that a pre-approved borrower has 97% of the buying power of a cash buyer. Walking around with tens of thousands of dollars in your pocket is not safe or practical, but a pre-approved loan from Best Mortgage is safe, and a really smart idea!
It has been said that the home buying process can be one of the most stressful events in a person's life. Now, with our Pre-Approval Certificate, you can lay to rest any concerns you may have about qualifying for a home loan.
The Home Buying Process
To help you understand this powerful home buying tool, we'll start by giving you an example of the steps involved in buying a home and applying for a mortgage using the TRADITIONAL APPROACH. To locate the home of your dreams and ultimately purchase it, here is the process you would likely go through:
Then, you spend day after day driving around the neighborhood of your choice, getting a feel for the values in the area and the kind of homes you really like.
You start going to Sunday open houses to get a look inside the homes you're interested in.
You meet a Realtor and start working together to find the best deal in that neighborhood on your favorite type of home in the price range you "think you can afford."
Finally, after countless days and endless hours of searching ... going to open houses ... calling on ads ... driving around neighborhoods ... researching the pros and cons of the area, its amenities, school districts and shopping facilities ... you find and fall in love with the perfect home for you ... and you want to BUY it!
Once you find that perfect home, your next step is to draft an offer to purchase it. This is where the expertise of your Realtor comes in. A professional Realtor will know exactly how to draft the offer and what clauses to include in the contract to protect your interests and your earnest money deposit. Once your offer has been submitted to the seller, you simply wait for an answer.
Now comes the most exciting . and most stressful . part of the entire home buying process. Only two hurdles stand between you and your dream home:
By this time your Realtor has probably instructed you to contact a lender
to begin the loan application process. You meet with a Loan Officer,
complete a loan application and supply supporting documentation. What is
involved in the loan application process? In the next section, we'll tell
you exactly what happens when you apply for a loan, and what lenders look
for in a borrower.
The "Traditional" Loan Application Process
Remember, at this point we are still talking about the old-fashioned "traditional" method of buying a home and getting a mortgage . where you make an offer first and apply for the loan second. You may have had a brief "pre-qualification" by your Realtor, or you may just be guessing that you can afford the home. The whole deal now hinges on you getting approved for the loan!
No loan ... no dream home. Gone! Just like that.
Let's look at the steps you will go through in getting approved for a loan:
What Lenders Look For in Borrowers
Mortgage underwriters look at "the four C's": credit, capacity, collateral and character. These are the criteria that lenders analyze when deciding whether to loan you money. Let's examine each of the four C's in detail:
How to get Pre-Approved
Let's review the entire home buying and loan application process as we've described it up to this point:
You sat down with a Realtor and wrote up a purchase offer.
You submitted your written offer to the seller and waited nervously for their response.
Finally, the news came back: The sellers accepted your offer!!
You met with a Loan Officer, filled out a multitude of forms and applications; and brought in an armload of documents to support the income and asset amounts claimed on your loan application.
Now, you're biting your nails, waiting for the critical "Yes" or "No" answer from the mortgage company.
After all you've been through, there is still a chance that you won't get the home of your dreams because your loan application could be turned down.
Now, let's see if we can make this process a little more fun ... and a LOT less stressful!
Wind back the clock and imagine that when you drafted your home purchase offer you were already approved for the loan. You had a Pre-Approval Certificate that your Realtor could include with your offer to the sellers. Wouldn't you feel more relaxed and confident? Wouldn't the sellers be more likely to bargain, knowing that you already had a written loan commitment?
The Pre-Approval Certificate gives the seller a GUARANTEE that you already have a loan to buy their home, and therefore, compels them to respond to your offer immediately.
By obtaining a Pre-Approval Certificate you eliminate the two major obstacles to buying your dream home:
Wouldn't it be wonderful to walk away from the bargaining table knowing there's an excellent chance that you'll be moving into your dream home in 30 days, or less?
IMPOSSIBLE, you say? How can someone actually be approved for a home loan before they even make an offer to buy? And how can such a Pre-Approval Certificate compel the seller to give your offer so much credibility?
Let's explain the details of the powerful Pre-Approval Certificate.
Here's What It Does For You:
How to Get Your Own Pre-Approval Certificate
So what does it take to get this amazing Pre-Approval Certificate?
It takes three simple steps:
You meet with a Loan Officer and fill out the loan application form and required paperwork. At Best Mortgage, we make this process as easy and painless as possible. If you don't want to come into our office, you can apply for a loan online using this website. Click here to apply online NOW! Or, if you are not comfortable applying online, call us at (425) 746-1310
Then, sit back and wait for your loan to be approved. At many mortgage companies, this process can take a a few days. But at Best Mortgage, we use comptuer automated underwriting to get your loan approved in a matter of minutes! You will then your receive Pre-Approval Certificate Look at all the steps you've eliminated by not using the traditional approach to buying a home:
Call us today at (425) 746-1310for a FREE mortgage consultation. We can get you pre-appoved for a loan and ready to buy your dream home in no time.