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More and more people, these days, are looking for pre approved of their mortgage before they go out into the market to find their dream home. So what is a pre arranged or pre approved mortgage? Basically it's a promise from the lender, in writing, stating that they will lend you a certain amount of money, for the purchase of a home, at a certain rate that they will guarantee that rate and offer for a period of time anywhere from 30 days to 120 days.
With the lender approving you for a mortgage, you can search for a home knowing that if you see one you like, in the price range you have already been pre approved for, you can make an offer knowing you already have the mortgage pre approved. This gives you a tremendous advantage when making an offer because there is no "financing condition" attached to the offer. This means that if there are multiple offers on the table that are conditional "upon financing"; the seller is going to be attracted towards yours even if it is slightly less.
There is another benefit that may be more subjective and personal but it is nonetheless a recognizable benefit that many people cherish while they are searching for a home. In a word, it is confidence. You can approach the whole business with a deep sense of confidence simply because you have already a home loan pre approved . Having boundaries to work within can be very beneficial for some people, particularly when they are involved in something with such long-term consequences like buying a house.
The last thing you need to provide is copy of driving license, SSN, and signature allowing the lender to pull a credit report. Once all the documents required the next thing is up to underwriter as he is the one who will get you a Pre Approval Home Loan.
Perhaps, the most profitable reason for getting a pre-approved home loan is the potential power you have to get a deal closed fast on a new home. Most agents or sellers are looking a more than one offer. Having pre-approved status is a way to make you stand out among the competing bids. This is especially true when other bidders have not secured any similar approval. The seller knows that you will be able to close on a house without waiting around for financing. You could even have the advantage over those who are trying to make higher offers and come away with a house for less money. With some many clear benefits, securing pre-approval for a home mortgage loan is a great first step that you should take well before seriously looking at houses. It will help you save time and make your search far easier than it would have been otherwise. Take the time to pursue this avenue and you will end up in better circumstances when it comes to buying that house you've always wanted.
With the lender approving you for a mortgage, you can search for a home knowing that if you see one you like, in the price range you have already been pre approved for, you can make an offer knowing you already have the mortgage pre approved. This gives you a tremendous advantage when making an offer because there is no "financing condition" attached to the offer. This means that if there are multiple offers on the table that are conditional "upon financing"; the seller is going to be attracted towards yours even if it is slightly less.
There is another benefit that may be more subjective and personal but it is nonetheless a recognizable benefit that many people cherish while they are searching for a home. In a word, it is confidence. You can approach the whole business with a deep sense of confidence simply because you have already a home loan pre approved . Having boundaries to work within can be very beneficial for some people, particularly when they are involved in something with such long-term consequences like buying a house.
The last thing you need to provide is copy of driving license, SSN, and signature allowing the lender to pull a credit report. Once all the documents required the next thing is up to underwriter as he is the one who will get you a Pre Approval Home Loan.
Perhaps, the most profitable reason for getting a pre-approved home loan is the potential power you have to get a deal closed fast on a new home. Most agents or sellers are looking a more than one offer. Having pre-approved status is a way to make you stand out among the competing bids. This is especially true when other bidders have not secured any similar approval. The seller knows that you will be able to close on a house without waiting around for financing. You could even have the advantage over those who are trying to make higher offers and come away with a house for less money. With some many clear benefits, securing pre-approval for a home mortgage loan is a great first step that you should take well before seriously looking at houses. It will help you save time and make your search far easier than it would have been otherwise. Take the time to pursue this avenue and you will end up in better circumstances when it comes to buying that house you've always wanted.
About the Author:
Learn more about Mortgage Pre Approval. Stop by Sam Knight's site where you can find out all about Home Loan Pre Approval and what it can do for you.
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