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

bill.anderson@rate.com

(860) 465-7556

www.rate.com/billanderson

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

Guaranteed Rate Inc.; NMLS #2611; For licensing information visit nmlsconsumeraccess.org. 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.

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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....

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