For Active Adult Community Home Buyers: Mortgage Pre-Approval
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.