You just got a mortgage preapproval. Now what? – Faithe Real Estate

You just got a mortgage preapproval. Now what?

If you are in the market for a new home, getting pre-approved for your mortgage is one of the first steps you must take. In fact, a mortgage pre-approval should be obtained even before you start your home search.

What Pre-Approval Means

A pre-approval is not the same as getting pre-qualified for a mortgage loan. Pre-approval involves approaching a mortgage lender and asking for approval to obtain a mortgage in the future. The mortgage lender will look at your credit score, employment history and current financial situation and use that information to determine the amount you can borrow for your home purchase. If you are approved, you will receive a pre-approval letter that can be used as a bargaining chip when you buy your home. Sellers love to see a buyer who has been pre-approved already, as it shows that the buyer is serious and has come prepared with financing to buy the home.

What to Do After Receiving a Mortgage Preapproval

Once you receive your mortgage pre-approval letter, it’s time to start shopping. You can begin browsing for homes online to see what type of property will fit your pre-approved budget as well as your needs.

With a mortgage pre-approval letter in your back pocket, you now know what you can afford to spend, how aggressive of an offer to make and how stable your financial situation is for a home purchase. Now that you’ve narrowed down your options, you can have a better idea of which homes to look at. To get an even clearer understanding of what homes are available to you, reach out to a Better Homes and Gardens real estate agent who has both the experience and the market knowledge to help you find the home of your dreams.

When you find a home you like, you can use the mortgage pre-approval letter as a bargaining tool. When you decide to make an offer on a home, make sure the seller knows that it is an offer with a preapproved loan behind it. This will increase the chances that the offer will be accepted. In fact, some sellers will accept a lower bid from someone with a pre-approval letter over a higher bid from someone without one.

Does a Pre-Approval Letter Last Forever?

Pre-approval for home loans is not an infinite tool. Lenders are well aware of the fact that your financial situation can and will change with time. Check the letter to see how long the pre-approval will last.

Also, remember that a pre-approval is not a guarantee of the loan. It means that you are approved to get a loan, unless something changes. The lender will ask more questions when you are ready to actually buy a home, and many factors, including the appraised value of the home, any title problems on the property and any changes to your financial situation, will be considered before you are actually granted the loan. With that said, unless your circumstances are unique, most pre-approvals turn into loans once your offer is accepted.

For more information about the home buying process, reach out to me!

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crow100bh
May 1, 2021.
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Robbie was amazing. He was able to get us the best sale price possible, and he was very responsive whenever we had questions or concerns during the process. I was also worried that selling would be a big headache, but Robbie and his crew made it super easy for us. We couldn’t be happier!
zarafanm
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Robbie and his team were efficient, easy to work with, and responsive to our needs. They presented options and guided us through the process with good advice and insights. Jamie followed up on all the details and made sure everything was on track. Very professional and enjoyable.
Sarah Putnam
April 28, 2021.
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Robbie and his team are incredibly knowledgeable and made buying a home easy. He was always quick to respond and efficient. I would highly recommend working with Robbie!
ellenparke
April 23, 2021.
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Robbie and his team are very efficient, responsive and knowledgeable. Robbie has exceptional negotiating skills, and finds innovative solutions. I enjoyed my home purchase experience immensely. Thank you!
josiah082809
April 6, 2021.
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This is the second house Robbie has helped us sell! He is very knowledgeable and professional! Genevieve also helped us a ton with buying our new home! We are so thankful for both of them and what they have done to help our family over the past two years! Thanks Robbie and Genevieve!
vpacala1960
April 5, 2021.
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Robbie exceeded our expectations; he was knowledgeable of the market trends in our area. He realized the square footage of our home in the prior appraisals was lower than the real area and that enabled us to get a better price for the home. We would highly recommend Robbie to anybody interested in selling or purchase a home.
rsedillo33 ds
April 1, 2021.
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5 Stars! He’s there for YOU from beginning to end and always responded promptly! Setting aside the business side of things, he’s a good person and good show of character!
forallie
April 1, 2021.
Verified
Robbie was such a pleasure to have as my realtor. He is always patient, kind, and helpful. I'm a first-time home-buyer, so there were a lot of things I needed to learn about and a lot of complicated documents to slog through. Robbie and his team guided me smoothly through the whole process. Robbie has a lot of experience in the Albuquerque real estate market and was able to give me good advice. He always responds to calls, texts, and emails right away, never keeps you waiting. Everyone on his team, from the people in his office to his fantastic loan officer to all the inspectors he lined up for me -- they were all top-notch, professional, and really pleasant to work with.
John Goen
February 28, 2021.
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Robbie Faithe and Jamie Cline were instrumental in our efforts to find and purchase our first home. Robbie helped strongly negotiate our position in a market that is frankly predatory and outright hostile to homebuyers, especially first-timers with little experience. He helped us move to a swift close while making sure everything was conducted soundly, promptly and with our interests at the forefront. He was supportive of us through the entire process, even after our first negotiations fell through, and was adamant about finding a house that we would truly want, not just the first home that met our loose criteria. Jamie Cline was vital in her role to assist us with booking appointments as well as keeping us apprised of all deadlines and offering advice when we desired. Overall, though this first-time homebuying experience was very stressful at times, Robbie and his team made sure there were as few impediments to the process as possible while making sure we were taken care of. I would definitely recommend their homebuying services and expertise.

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