Getting Pre-Approved for your mortgage

Getting Pre-Approved for your mortgage

Nothing is more important than obtaining a pre-approval when buying a home. First, it helps you narrow down the homes under consideration because it tells you what price house you can afford. Second, pre-approval can give you a leg up over other buyers when you find a home you like. Sellers are more likely to accept offers from buyers who they know have financing secured, because the sale is more likely to close.

A legitimate pre-approval letters give the seller confidence in you - the buyer. The Federal Saving Bank analyzes your credit and verifies your income and liquid assets (bank accounts, investment accounts, retirement, etc.). Simply provide us the documentation (we'll tell you what we need - usually just a paycheck stub and W2) and a copy of your bank or investment account statements.

Pre-approval is a good step to take before you start shopping because it shows sellers that you are a serious buyer. In fact, in some housing markets, for your offer to be reviewed it is necessary to be preapproved. That way, sellers can be certain the deal won’t fall through.

Remember that you can buy a home for less than your pre-approval amount. Think of pre-approval as your limit. If your budget doesn’t allow for a $1,500 monthly mortgage payment but your lender says you can afford that much, stick with your budget. We want you to get the most for your money, but avoid getting in over your head!

If you are ready for a pre-approval, the first step is to call us at 877.788.3520 (or your TFSB Banker, if you already have one). We will discuss all of your options and help you and your realtor negotiate the strongest purchase offer.Remember, certainty can be a substitute for price in the mind of the seller. In other words, a full pre-approval letter can often convince the seller to accept a lower price because they know you're a solid buyer. It also means no surprises for you, since the only thing standing between you and final loan approval is the appraisal of the home. Writing a strong offer can also help you negotiate a lower price.

Still have questions? Call us at 877.788.3520 or your TFSB banker directly if you have already established a relationship with one. If you are ready to apply, then let’s go!