Before you go home shopping, get Pre-approved.

Pre-approval is a must, it’s the best way to check on your affordability range for a home.

What is a Pre-Approval Letter?

Many homebuyers will be required to add a pre-approval letter to their offer when buying a home. Although not technically a must have, most sellers will likely not make a commitment to accept your offer without one!

They want to know that you have made the effort to know how much you can afford, how much you will be putting down, and whether or not you have the ability to purchase based on a lender reviewing your overall financial situation. Having your lender write you a pre-approval letter to accompany an offer once you’ve found your dream home certainly goes a very long way to strengthening your buying position.

How do I go about getting a Pre-Approval Letter?

The best way to get pre-approved is, of course to find a good lender! Certainly your real estate professional will have folks they know and/or work with closely! In some cases, you may turn to a friend for a referral or even walk into your local bank and ask to speak to a loan specialist.  Be sure to look into credit unions as well but always make sure you’re comparing apples to apples.

Getting Pre-Approved | Janet Simons | Real Estate Broker Chehalis Washington

How does the Pre-Approval process work?

Once you  find a home, the mortgage process begins. In todays market, there are many new requirements and financial challenges that make getting pre-approved more important than ever…and more demanding!

Going through the loan and pre-approval process may be on the same pain level as a root canal with no Novocain for those not in a great position financially to buy a home! Requiring lots of patience and perhaps a level of organization you’re not accustom to, your lender will likely request documentation you normally don’t just keep around the house!

Gone are the days of easy loans with lenders are no longer handing cash out to anyone with a heartbeat. You’ll need to dig up lots of paperwork — and, there will be multiple requests for even more documents once you move toward closing. Eventually, you will need a “commitment letter,” which details the terms of your loan approval.

Your lender and his or her underwriting team are there to work with you and although their continued requests may seem like they’re putting you through it, everyones goal is to make sure you have every single thing you need to get to the closing table with confidence and most importantly, be able to comfortably handle the financial requirements to purchase your new home!

If you have any questions about the home buying process, remember I’m here to help.

SimonsI am passionate about Real Estate and eager to answer all of your real estate questions! Text or Call me at 360-880-2356 or email me directly to ask about Buying, Selling or Investing in today's Real Estate Market - serving Lewis County & Thurston County, WA.

Janet Simons | Certified Residential Specialist | Real Estate Broker
Mountain Valley Real Estate