Pre-Approval

Pre-Approval

One of the first things you might want to consider doing as you begin searching for a new home is to get pre-approved for a mortgage. A pre-approved buyer is one who has completed the mortgage process and has actually been approved for a mortgage up to a specified amount.

A pre-qualified buyer is one that has submitted certain income information that a lender uses to say they are qualified to borrow up to a specified amount. However, the lender has not verified any of the information that has been submitted and may also require additional information before final approval is granted.

Being pre-approved is useful for a number of reasons. First, it lets you know just how much you can afford to spend on a home purchase. You'll know exactly what the bank will finance, you'll know how much you need for a down payment, and finally, you'll know the just how much closing costs will be.

Secondly, pre-approval will aid you in your purchase negotiations. Most offers to buy property are contingent on being able to finance the purchase. A pre-approved buyer is a fully qualified buyer which the seller is often more willing to negotiate the price with.

HomeQuest
10 Market Square
PO Box 278
S. Paris, ME 04281
207-743-7716
info@homequestmaine.com

207-743-7716 info@homequestmaine.com