October 18th, 2017 1:42 PM by Bruce Dittmer
If you’re looking at
buying a home and haven’t yet been approved for a mortgage, it’s important that
your read this post.
While a mortgage
pre-approval is not required to make an offer on a home, it is needed if you
want to be taken seriously by potential sellers.
In this blog post we
are going to talk about pre-approvals on your Kentucky mortgage and why you
really should be getting one if you plan on buying a home.
Beginning with the
basics, a pre-approval on a mortgage is essentially a lender confirming that it
has agreed to finance your home. Of course, they will finance it to a point
based on a number of factors (which will be discussed later) and will outline
the details in a pre-approval letter.
Now that we know what
a pre-approval is, why should you be getting one?
Unless you are
willing to pay for a home in pure cash or have an extremely stable job with
great credit, home sellers may only take your offer seriously if you have been
pre-approved for a loan. This is especially true if you have a history of bad
credit or you truly aren’t set on an amount that you know you can afford.
pre-approval can come in extremely useful if you are purchasing in a popular
market where multiple bids will be placed on a home. If you have letter from a
lender stating that you have been previously approved for a mortgage, the
seller knows they will not have to wait for you to be approved and can thus
speed up the transaction immensely.
Now that we know what
a pre-approval is and why you should get one, it’s time to look at how to get
Firstly, you need to
find a lender that can help you achieve your purchasing goals. For example, do
you want a lender who can help you close fast? Or, would you prefer to work
with one who has a solid reputation and may hold some authority with the agent
of the seller?
Once you find a
lender you want to work with, you’ll need to provide several documents to help
the lender make a decision on whether they should finance your purchase. Some
of the documents required by a lender include:
Once the lender has
all of the required documents, you’ll need to give them your permission via
signature to run a credit report.
check out and the lender feels you are a good candidate for a loan, you will be
granted a mortgage pre-approval!
If you’re considering
buying a home in the area and are looking into whether you should be getting apre-approval, contacting a trusted Louisville mortgage professional such as
myself is a great way to get your questions answered and set you on the right
To learn more how I
can help you achieve your financial goals, get in touch with me today!