How and why do I get my loan before buying
my home?
There
are two ways to buy a home...contingent and all cash. The word contingent
is a real estate term meaning not yet approved for your mortgage. The term
is used to explain that a persons offer to purchase real estate is
contingent upon the buyer qualifying for the loan to complete the
transaction. This type of offer is generally less favorable to a seller
considering which offer to accept for their property. In order to bolster
your negotiating position, you should be pre-approved prior to beginning
the negotiating process. By being pre-approved, you have now moved from
being a contingent buyer to an all cash buyer.
Pre-approved means that a mortgage or real estate professional has
examined, submitted and received acceptance on your financial capabilities
of qualifying for a mortgage based upon your income to debt ratio, loan
information, and credit profile. With
a pre-approval you can close the loan faster and often will find your
offer more acceptable to the seller.
If you are about to begin the process of buying a home we would
strongly recommend pre-approval over simply being pre-qualified.
Landmark Mortgage
specializes in assisting individuals with obtaining home loans, including
pre-qualification and pre-approval.
We can advise you on the best
approach and help you get the house of your dreams!
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