Note to Homebuyers: A Solid Pre-Approval Letter is Key

04/29/2016

Note to Homebuyers: A Solid Pre-Approval Letter is Key

With many homes drawing multiple offers within a few days or even just hours after hitting the market, real estate agents are advising would-be buyers to nail down a solid mortgage loan pre-approval before they start looking.

“Pre-approval is extremely important in a competitive market,” said Alexis Ruzell, with Realty Executives Integrity on the North Shore. “And it’s important to know what kind of pre-approval you are getting. Are you getting one the bank will stand behind?”
 

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Chris Boland, a vice president and mortgage loan production manager at North Shore Bank, said there is a big difference between “pre-qualification” and pre-approval.  “Pre-qualification is typically something you can get without anybody actually checking your credit and reviewing your income versus your debts. It’s a ballpark estimate of your buying power. Pre-approval is based on verification of income, assets and credit.

With a solid pre-approval, you can make an offer with the confidence that, if it fits the parameters of the pre-approval we’ve given you, you’ll be able to get the mortgage.”

Getting pre-approved doesn’t have to be time-consuming, he added, noting that visitors to the North Shore Bank website can obtain a pre-approval letter 24 hours a day. The bank’s data processing system instantly verifies information submitted by the applicant, pulls credit scores from third-party databases, determines if you qualify for the loan amount submitted, and generates a pre-approval letter for that amount – in other words, exactly the same steps that would occur with an in-person application.

“There’s no waiting time when it comes to making an offer,” said Ruzell. “You need to come to the table with your financing arrangements in order.” 
 

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