Advantages of Loan Preapproval

By
Real Estate Agent with Harry Norman Realtors GA#255705 NC#204194

Loan preapproval is an essential first before shopping for a home, if financing is needed. Once a lender issues a preapproval letter, it means the buyer can:

  • Buyers save their time and the agent's time by only looking at homes they can afford.
  • The home buyer gains confidence. Being preapproved, gives buyers the advantage of knowing that they can qualify to purchase the home.
  • Sellers will be more likely to accept an offer from a buyer who is already preapproved.
  • Closings happen faster. Since the bank already has the majority of the information from the buyer, the time frame for closing is lessened.

Mortgage approval is usually the longest contingency to satisfy in a purchase contract. It is to the buyer's advantage to get preapproved as soon as they are ready to being their search.

Posted by

 

Karyn Smith Woody, Realtor

 

Harry Norman Realtors

Blairsville Office- 63 Murphy Hwy - Blairsville, GA 30512

 

706-745-3000 Office

706-897-0956 Cell

 

Licensed in Georgia & North Carolina

 

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Rainer
70,299
The Rains Team
Keller Williams Realty Atlanta Partners - Hoschton, GA
A higher standard in real estate

Hi Karyn: I completely agree with you that a buyer should get pre-qualified before going out and looking for a home! We always get our buyers to do this first because then they never look at a home they can't afford--if you take them out before getting pre-approved chances are they will look in a higher price range than they can really afford and they get disappointed when they don't qualify to buy their dream home. Thanks for sharing!

Have a great day,

Anne Rains

Jan 26, 2009 08:01 AM #1
Rainer
81,716
David Width Jr.
Little Egg Harbor, NJ

Real good post. One of the most common mistakes made by newer agents in the market. Once their time gets wasted on a couple of appointments, then they realize how important this really is.

Jan 28, 2009 12:51 AM #2
Rainmaker
143,959
Karyn Smith Woody
Harry Norman Realtors - Blairsville, GA

Thanks Anne and David. Preapproval is so important. Hopefully more agents and buyers will start implementing it more, especially with it being much harder to qualify for a mortgage in today's market

Jan 28, 2009 09:22 AM #3
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Rainmaker
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Karyn Smith Woody

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