Preapproved

Getting Preapproved for a Mortgage loan is one of the smartest things you can do as a real estate buyer.

People interested in buying real estate can approach a mortgage broker, who will check their credit and verify their income, and based on the information they provide, can safely assume they would be able to get a loan based on that criteria.

There is difference between being preapproved and being prequalified. A preapproval will be based on verified information while prequalifications are based on information supplied by borrower.

When you are in the market for a home purchase, getting preapproved is the first thing you should do.

Preapproved borrowers are more likely to be taken seriously by realtors and sellers during the home shopping process.

A pre-approval should list the loan amount and purchase price. The date should be listed and a note should be included stating income, assets, and credit have been verified. This will greatly increase your negotiating postion when buying a home.

In today's real estate world a preapproval is pretty much a necessity to even be able to place a bid on a home anymore. Realtor's and sellers alike want to make sure they are not wasting time with borrower's who can not qualify for a mortgage to buy their home. Not only will a preapproval allow you to place a bid on a home, but a pre-approval will let you know how much of a home you will qualify for so that you make sure you are looking at homes that are going to be within your approved budget.

In a buyers market, a preapproval indicating that credit, income and assets have been verified can be an enormous bargaining chip when dealing with a desperate seller. However, the standard prequalification letter would be of little advantage.

» DISCLAIMER: The information contained in this article on 'Preapproved' is a collection of contributions by licensed mortgage professionals and is not the opinion of Broker Outpost LLC. Always consult a licensed professional before applying for a mortgage.