NMLS 2275047

Why Getting Pre-Approved in Writing is Important When Searching for a House

When you begin the search for a new home and contact your realtor, he or she is likely to ask if you have been pre-approved by a bank or lending institution.  Many people get annoyed with this request, but it’s important to understand why the realtor is asking this question and how a pre-approval will save both you and your realtor a lot of valuable time in the process of searching for a home.

First, and most importantly, a pre-approval letter will show both you and your realtor that you can buy a house.  Unless you have a large sum of cash to lay down on a property, you’re going to have to obtain financing in order to purchase a home.  If you and your realtor start the search prematurely, without first making sure you are able to get financing, you could be wasting time if you find out that your credit score or job situation is going to make it impossible to obtain financing.

Second, a pre-approval letter will show your realtor the price range you can afford.  Without this price range from the beginning, you might be wasting your time looking at houses that are out of your price range.  If you find out later that you have to downgrade your expectations, none of the properties you see will measure to the initial properties you viewed.  This could seriously complicate your search for the best home for you and the best price for your budget.

Finally, never settle for a pre-approval that was given verbally or over the phone.  You need the pre-approval in writing to make sure that the offer will stand when you find the home you want and go back to your bank or lending institution to begin the financing process.  This written statement of pre-approval will also give you more leverage in your negotiations with the seller—when he or she sees that you have a defined limit in what you can finance, the owner will be more likely to lower the price to fit in that range if they are anxious to sell.

Corporate Office

2424 N Federal Hwy, Suite 100
Boca Raton, FL 33431
(561) 395-6900
(888) 216-6476

NMLS 2275047

CHOICE MORTGAGE GROUP

Official Mortgage Lender of Florida Atlantic Athletics

CLICK THE FOLLOWING LINKS TO READ IMPORTANT CONSUMER INFORMATION AND DISCLOSURES

IMPORTANT DISCLOSURES | PRIVACY POLICY | PATRIOT ACT | STATE LICENSING INFORMATION | LEGAL & DISCLAIMERS

© 2024 Choice Mortgage Group. All Rights Reserved. Web Managed by IWD Marketing

To help the government fight the funding of terrorism and money laundering activities, Federal law requires us to obtain, verify, and record information that identifies each person who applies for a mortgage loan or other financial services with this establishment. We will ask for your name, address and other information that will allow us to identify you. We may also ask to see your driver's license or other identifying documents.

2424 N Federal Hwy, Suite 100 Boca Raton, FL  33431 | Phone: (561) 395-6900 Toll-Free: (888) 216-6476
Interactive Direction Map