Making the decision to purchase a new home is not taken lightly by most people. Whether it will be your first home or just a situation of downsizing or upgrading your present home the first question you should ask yourself is, ”How much of a mortgage loan can I qualify for?” Adding this information to the amount of down payment you have pretty much gives you a price range of the homes you can look at. This saves a lot of time and energy, and prevents disappointments when you set your heart on a house that is beyond your price range. It also shows the realtor and seller that you are a serious buyer ready to do business TODAY. A letter of pre-qualification increases your negotiating power
But how do you go about getting pre-qualified and how long will it take to do so?
Usually one phone call or visit to our office is all the time needed to obtain your pre-qualifying letter. Based on the information garnered from a few pertinent questions related to income, down payment available and pulling your credit scores our brokers are able to generate enough information to allow him to calculate your qualifying amount. He puts this into letter form and presto you are armed for the hunt.
However by spending few more minutes and making a full application our brokers are able to make a more in depth analysis of your total situation. By submitting all this information, and transferring it to our automated underwriting programs with our lenders we generate a pre-approval letter .This letter goes the extra mile and shows your approval for the loan amount specified. Your negotiating power has just gone thru the roof when up against a seller without the letter.
