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Getting Pre-Approved

When Should I get a Pre-Approval Letter?
You should have your pre-approval letter in hand before you start making appointments to view properties. Sellers and real estate agents alike expect that they are only showing properties to bona fide prospective purchasers with pre-approval letters.

Attending Open Houses or touring an area with an agent is one thing, but when you are out there viewing properties you must have a current pre-approval letter, without one you could potentially be taking valuable selling time away from both the Sellers and the real estate agents.

Pre-Qualified vs. Pre-Approved?
Anyone can be pre-qualified. In fact, you can get a pre-qualification letter in under 2 minutes from just about anywhere on the Internet. "Pre-quals" as we call them are a dime-a-dozen and are really only a letter stating that if what you say is true you may be able to get a loan. 

Pre-approvals do require a little more effort, but there is a great benefit! A pre-approval means that a lender is willing to give you a loan based on a comprehensive review of your financial picture. It means that you have been proven capable of acquiring a loan. Keep in mind that in today's real estate climate Sellers don't accept offers without pre-approval letters.

How Should I Get Pre-Approved?
Start by contacting a lender. There are a ton of choices out there. You can speak with banks, credit unions, lending institutions, mortgage brokers, etc. Depending on your finances and credit score one might be a better fit for you than another. I suggest shopping around and in some cases taking a home buyer or credit class.