The Importance of a Pre-Approval

Buying a home in a seller’s market can be tough. However, there are a few different ways that you can stand out and win against other buyers.

When you’re looking to purchase a home with a loan from the bank, you’ll need to go through the pre-approval process. It’s much more in-depth than a pre-qualification. The lender will run your credit and take a look at all of your financial documentation, as opposed to just having a conversation with you on the phone.

What does a pre-approval do for you? For one, it’s going to make home sellers take your offers much more seriously.

However, in this market, 99% of buyers are pre-approved, so if you don’t have a pre-approval, you’re going to stick out like a sore thumb and there’s a very low chance of your offer getting accepted. A pre-approval also lets you know whether or not you can afford a certain property.

The next step is getting a fully-underwritten pre-approval. This is where the lender takes your file all the way through the underwriting process, verifying your debt, income, and other financial documentation. When you make an offer on a home, this will make your closing time much shorter: 10 to 14 days vs. 30 to 45 days with a regular pre-approval. A fully-underwritten pre-approval makes your offer that much more attractive in the eyes of a seller.

In this market, 99% of buyers are pre-approved.

By going through this process, you can also uncover potential issues that you might not be aware of. Getting in front of them with a fully-underwritten pre-approval is the way to go. Although this process can take a few weeks, it shortens your closing period significantly.

If you’re looking to get a pre-approval before you buy a home, it’s important that you work with a respected, local lender. Lenders who are based in other states have different requirements than we do here in Washington and those can conflict with how we do business. A national lender also won’t take the time to handle your pre-approval like a local lender will and things could fall through the cracks.

If you have any questions about pre-approvals or real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Gavin Shnieder

Gavin is the founder and owner of Abode Base Real Estate & Smart Pad Property Management. When he's not helping folks buy and sell homes or training agents, he enjoys spending time with his 3 daughters and beautiful wife.

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