Mortgage pre-approval for a purchase home loan.

A mortgage loan pre-approval letter tells home sellers that you have already qualified for financing to purchase their property.

If you're looking to purchase a home, getting a loan mortgage pre-approval from a lender is one of the first and best things you can do. This determines the size of the loan you qualify for, and therefore, helps decide the upper limit of the price range for the homes you should look at.   Request a Mortgage Loan Pre-Approval Now

A mortgage pre-approval helps you to:

Know how much purchase money you can borrow.

Confirm in writing your ability as a borrower, to pre-qualify for a mortgage based on your credit, financial and employment information.

Strengthen your negotiation position to make an offer on a home. A seller will be more willing to accept an offer if you, as the buyer has a loan pre-approval in writing.

Real estate agents will work much more diligently for you if they know you are a "real" buyer.

Close your home purchase transaction much quicker since the loan is already done.

Beat out competing bids on the same home. Sellers don't have to "hope" you'll get the loan.

To become pre-approved for home mortgage, you'll need to start working with a lender or preferably a loan broker. A mortgage broker will be able to get you pre-approved with 2 or 3 lenders then select the one with the lowest interest rates and fees when it time to close. The broker will review your credit history, earnings information, employment history, assets and other information. You will need to provide certain documents to the broker to verify this information.

After the review process, the broker will secure from a lender and give you a "mortgage pre-approval loan letter." The letter tells home sellers that you have the ability and do qualify for a certain dollar amount. This approval letter can be amended to specifically address the details of the home you are making an offer on. This gives your Realtor an edge when presenting your offer to the seller.

Getting pre-approved for a mortgage is not the same thing as just being pre-qualified. Getting pre-qualified simply states that you, the borrower should qualify for a loan based on some preliminary questions you have answered but does not commit the lender to approve and fund the financing. The mortgage broker will still have to conduct a complete review of your financial situation, including your credit report, your income and employment history.

The pre-approval process is more thorough. The broker does most of the work for full approval except for an appraisal and title search because there is no property identified to buy at this point. Once a home is found and an offer is accepted, the appraisal and title is incorporated into your credit file, final approval for the property is done and you close.

Happy home hunting!!!

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