The Importance of Pre-Approval and the Home Buying Process

Dated: November 17 2020

Views: 219

The Importance of Pre-Approval and the Home Buying Process, by Bill Anderson

Bill Anderson 

Vice President of Mortgage Lending at Guaranteed Rate

(860) 465-7556

NMLS ID: 1867550, LO#: CT - TAO, FL - LO62725

Guaranteed Rate Inc.; NMLS #2611; For licensing information visit Equal Housing Lender. Conditions may apply CT - Lic #17196 FL - Lic# MLD1102 

If you’re one of the many buyers in pursuit of that enviable home office, or maybe more outdoor space, an extra bathroom or just a change of scenery, you’ll want to do whatever you can to stand out in today’s market. Instantly distance yourself with an underwritten letter of pre-approval.  It seems the lower the rates, the higher the competition, and rates continue to sit at record-lows. 

Pre-approval is a game-changer. It shows sellers you mean business. You have done your research; you know your budget and you’re ready to plunk down some serious cash on a brand-new home.

I would love the opportunity to discuss your individual budget and determine what monthly payment you would be comfortable with and provide you with a letter of pre-approval. During this conversation I will gather information regarding your employment, income, monthly debt obligations, and savings.  

With the pre-approval letter and real estate agent in tow, you begin shopping for your home. Once you have found the home and agreed on a purchase price, you will execute a purchase contract. The executed contract will be sent to me to complete the preparation of your loan file. We are in this together and I will provide constant loan status updates every step of the way.

Once your loan is submitted and underwritten, you will receive a conditional approval.  So, what is a conditional approval? This is an approval subject to items an underwriter needs to clear your loan to close. Documentation requests can range from an updated pay stub to a letter from your CPA explaining your self-employed earnings. Every loan scenario is different so requested documents will vary from loan to loan.  The underwriter will then review all documentation to clear conditions and issue the final approval, also known as your Clear to Close.

Once Clear to Close, your closing time and place can be scheduled. At closing you will sign the loan documents, receive your keys, and celebrate!

Before you step out into this low-rate, fast-paced market, make sure you have a pre-approval at your fingertips. When you come across something you love, you will want to be ready to make a move.

Blog author image

Derek Stout

My passion for real estate began when I was a child, touring the luxury Parade of Homes in Plano and Dallas, Texas with my mom, Connie. We spent afternoons looking at houses, and picking up design ide....

Latest Blog Posts

Out of State Buyer Checklist

Out of State BuyerAt Ancona Real Estate we strive to be the perfect Realtors. ✔ We work on a concierge level with our clients to deliver stellar wins. ✔ Impeccable communication is at the heart

Read More

Migration to South Florida in Unprecedented Times

South Florida is entering an unprecedented Real Estate boom and I wanted you to know first. What we are seeing is both a forced and chosen migration to South Florida as a result of COVID-19.By,

Read More

Under Contract? Critical dates to close the deal.

When you go Under Contract and are using Financing (mortgage) this blog article will help you keep track of the most important milestones along your transaction. If you're paying cash the below won

Read More

Edible Landscapes

Inspired by one of our listings - a beautiful piece of land in Hollywood Florida - considering its position on the canal and access to all South Florida - I started imagining, what to build?How

Read More