Shopping for a home before getting preapproved for a mortgage is the equivalent of walking into a grocery store without a wallet. The vast majority of homebuyers don't get a loan preapproval before the start searching for a home.
A preapproval is different from a prequalification. With a prequalification, the lender relies on information provided by the buyer to estimate how much the borrower could qualify for. With a preapproval, the lender verifies the borrower's information and documentation to determine exactly how much it would be willing to lend to that borrower.
Pre-approval is an important step in the home buying process. It gives you an accurate idea of how much home you can afford and ensures your search remains within your budget range. Having a pre-approval letter will let sellers and their REALTORS® know that you are serious about making an offer, and many require submission of a pre-approval letter when making a offer.
Most pre-approval letters are good for 60 to 90 days. Having your pre-approval letter rahter than just being prequalified will make you look more credible. As the real estate market in Asheville continues to be hot, pre-approval can give you credibility and an edge on other home buyers submitting offers.
To learn more about the pre-approval process contact Mosiac Realty today.