Are you thinking about buying a home? It’s an exciting time, but it can also be overwhelming. That’s why it’s important to understand the different stages of the home loan process.
First up, pre-qualification. This is a quick and easy step where your lender will gather some basic information from you to estimate what you might qualify for. It’s a great starting point, but keep in mind that it’s not a guarantee because nothing has been verified.
Next, pre-approval. This is where things get a bit more serious. You’ll need to fill out an application, provide documentation, and undergo a credit check. If you’re approved, you’ll receive a letter from your lender stating your exact loan amount. This gives you a big advantage when making an offer on a home! You’ll have a much better idea of how much home you can qualify to purchase and you will also understand more about where your payments will be.
Finally, a fully-underwritten pre-approval. This is the gold standard of the home loan approvals. Your lender will manually underwrite your loan to get a fully-underwritten approval. This assures the seller that you have the ability to close the transaction quickly and gives you the best advantage in a multi-offer situation. The only thing we. will have left to do is identify the property so we can finish the title and appraisal process.
So why go through all of this? Well, for starters, you’ll save time and emotional energy by only looking at homes that are a realistic fit for your budget. Plus, you’ll be able to compete when you’re dealing with a multiple offer situation. And yes! This is still happening if you’re looking in San Diego!
Contact me so I can direct you to a local lender who can get you on a path to a successful purchase! I look forward to working with you.