Before you
seriously start searching for your Active Adult
Community home, it’s
important to get a mortgage “pre-approval” letter
from a lender.
Often, the terms
“pre-qualified” and “pre-approved” are confusing to
homebuyers. Getting “pre-qualified” is a simple
process of providing a lender, either in person or
online, with your basic financial information. The
lender can quickly determine a price you can most
likely spend
for a home (subject to approval), depending on your down payment, current
debts, and the amount the lender will approve.
Being
“pre-approved” means that you have taken the
necessary steps to have the mortgage lender review
your credit, verify your employment, and examine the
other aspects of your financial position to make a
loan determination. Being “pre-approved” by a
lender indicates to a seller that the lender
considers you financially qualified and a good risk
for a particular loan package. This information is
important to a seller, and it will give you more
leverage in your negotiations.
It’s important to
remember that “pre-approval” letters are not a final
loan commitment. They are not binding on the
lender, are time-sensitive, and subject to a home
appraisal. However, the “pre-approval” demonstrates
your financial strength and can provide you with
more confidence as you proceed through the offer and
buying process.
To obtain a
“pre-approval” letter, I can
suggest a lender that has a history of excellent
service and will offer you competitive programs,
rates and terms.
