A good thing to keep in mind in today’s mortgage market is that a pre-approval for a mortgage loan that was done a week or two ago may not go through today. Due to the changes in the mortgage market, programs are changing every week and everyday. Programs that buyers are getting pre-qualified under are being discontinued or changed each week. So contact your mortgage professional to see if your pre-approval is still up to date. At one point, there were programs that were allowing up to 6% seller assistance with closing. These programs are more hard to come by (if at all).
Sometimes real estate buyers say that they are not going to get pre-approved until they find a house but that is not really in the buyer’s best interest. Getting a pre-approval for a loan is something that should be done in advance. Getting pre-approved will help you know what houses you should and should not be looking at, helping you save valuable time and gas. A buyer will also be able to find out how much money he or she will need down and what closing costs will be. This will allow the buyer to save up more funds, maybe even borrow from a relative (with loan approval), or know if you need to ask for seller assistance for closing.
A buyer wants to be ready to go in when he find the house. When house is the right one and the right price, chances are you could run into multiple offers. Your pre-approval is one things that will help make your offer stronger. If you do not have your approval in hand, that could be the difference of getting the house.
Click here to find out the Differences Between Pre-Qualification, Pre-Approval, Loan Commitment