The Importance of Getting Pre-Approved

The Importance of Getting Pre-Approved by an Experienced Loan Officer.  Have you heard a friend or co-worker’s story about trying to buy a home and then losing the home in the middle of escrow?  Do you wonder how that happens and how to protect yourself from having it happen to you?  There could be numerous reasons this could happen such as a question about the current title of the property or perhaps repair items that may come up during inspection but you can take the guessing work out of the loan approval by getting pre-approved.  If you are thinking about buying your first home or your next home, the mortgage rules keep changing all of the time.  Rules that were in place or not in place last year could have changed this year.  In fact the government has already announced that they will be implementing some new rules for mortgages sometime next year.  They are always being adjusted a little here and a little there.  Home values have been on the rise for most of San Diego County and for the first time in years some people are able to sell their current home without doing a short sale and be in position to purchase their next home.  But what if the home was sold, and with current guidelines, you didn’t qualify for the next home of your dreams?  You would definitely want to know that before you sold your existing home.

If you are even thinking about a home purchase (or refinance) that is the time you want to start making sure you save all of your paperwork like paystubs, bank statements, paperwork on irregular deposits into your bank, etc.  A loan pre-approval offers you peace of mind and reassurance that you are looking for a home in the proper price range and that the payments are what you expect and you are comfortable with.  The real estate market has shifted this year and now there are multiple offers on many of the homes listed for sale.  A loan pre-approval may help your offer on a property get accepted.  Imagine if you are the seller and you get three offers that all show the same or similar offer price.  One buyer is pre-approved, the other two are not, and which one would you pick?

What is the difference between a pre-qualification and a pre-approval?  A pre-qualification is where you provide your income and asset information verbally over the phone, or through email/online resources, and a current credit report has been run and reviewed.  The qualification says that based on what you have told us you qualify for ‘x’ amount.  A pre-approval is where you provide the backup documentation such as paystubs, W2’s, tax returns and bank statements.  The pre-approval certifies that we/the lender have received your paperwork and it has been reviewed by us and it is determined that you qualify for ‘x’ amount.  Reduce your risk, gain more confidence, and help gain a seller’s confidence in your offer.

If you would like straight forward, comprehensive feedback on the home financing options available, please call Julie Ozanich at 858-369-7510. NMLS#: 479603.

______________________________________________________________
With a mission to provide a higher standard of mortgage lending services, Julie began her career in mortgage banking in 1990.  To date, Julie has successfully closed over $1 billion in mortgage loans and helped over two thousand customers achieve their mortgage goals.  Program availability may differ slightly in different states.  Terms may vary.  Subject to change without notice. Bank of Manhattan is not affiliated with nor endorses The Carmel Valley Life. NMLS# 401422.