For a preapproval, the lender takes a detailed look at your financial background and commits to lend a certain amount of money, after a satisfactory appraisal of the property in question. A pre-approval requires a credit check, and upon writing an offer on your new home supporting documentation will be required. A pre-approval is much more accurate than a pre-qualification, which is an estimate of what you can afford based on the information that you provide, without a credit review or supporting documentation.

The first two steps in finding your home is to select the right Realtor and to get preapproved for a mortgage. This should be completed prior to the search of homes for the following reasons:

• Discover possible qualification issues early, minimizing last minute surprises.
• Shop with confidence that you are approved for the correct price range.
• Provide a better negotiating position.
• Enable your loan officer to structure the details of the contract specific to your lending needs.
• Obtain a quick closing date.

Obtaining a preapproval letter up front allows you to move forward with the search and purchase of your new home with confidence. Get preapproved now!