Why Preapprove Early?
If you are thinking about buying a home, the first thing you will want to do is preapprove for a loan. In fact, most realtors will not show you homes, or allow you to submit an offer without a preapproval letter from a lender. Most sellers are advised by their realtors not to consider an offer without a preapproval letter. The preapproval letter shows everyone that you have submitted financial documents to a lender and already qualified for a loan.
What happens during the preapproval process?
The main goal of the preapproval process is to determine your maximum purchase price, as well as determine what types of loans are available to you. During the preapproval process, the team at Dave Financial will have you complete a mortgage application and provide us with various information verifying your employment, assets and financial status. We will collect documents such as W-2 forms, bank records and credit card statements. We’ll review your mortgage options with you and submit your application to the lender that best meets your needs. Once the application process is complete you will receive a pre-approval letter indicating the amount your lender is willing to lend you for your home.
What Else Happens During the Process?
We also discuss your financial and personal goals. We want to make sure that the home you are buying and the options we are providing fit your goals. Besides covering loan options with you, we cover payment information. We help break down the possible monthly payments you will have for various purchase prices. Our goal here is to make sure your loan fits your budget and financial goals. Just because you can buy a home does not mean that you can afford the home.
How Else Does Preapproving Early Help?
By gathering up you documents early, the preapproval process will help you close your loan on time. By the time you find a home, the lender has already reviewed your income and asset statements. We are able to close your loan in as little as two weeks because we have already submitted the majority of the document required. We usually call the listing agent when the offer goes over to let them know we have all your documents and that the lender has already preapproved the loan. This puts you in a superior position to other offers.
Need help preapproving? Give our team a call today. We are here to ensure your success!