WHAT IS PRE-APPROVAL? JONESBORO ARKANSAS

What is a Pre-Approval letter? I get this question ask alot, especially comes from First Time Home Buyers. What is so important about a Pre-Approval letter. As a Realtor let me help you with these questions. First of all, if you are a serious buyer it is a must to get pre-approved. This determines your borrowing power. We do not want to be looking at homes we can not afford, you need to know how much you are qualified for. Also, what type of loan are you getting, if it is a Rural Development you will not need a down payment, it is  100% financing, if it is FHA you will need at this time 3.5% down payment. It is very important to get with a lender and let the lender go over all your options. Pre-approval means your credit files have been reviewed and based on this  information the lender will give you a letter that has the terms and the amount you are Pre-approved for. This is the best way to shop for your home. This also allows the seller of the home you choose, to know that you are a serious buyer when the offer has been presented. NOW... is the BEST time to buy a HOME....the rates are at a all time low, so why not take advantage of it!!