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If you’ve started your property search, you’ve probably heard of the term ‘pre-approval.’ Perhaps it’s already been recommended to you to get a pre-approval letter, and if you’re looking with any intention to buy, then you definitely should.

Mortgage pre-approvals from a trusted lender give buyers a clear budget to work within. It means that your finances have been reviewed and a loan amount approved based on your current income and debts. Pre-approvals help you understand exactly how much you can spend and help you with your future budgeting.

Pre-approval help get your offer accepted.

Think of your pre-approval letter as your ticket to making offers on a property. In San Diego, most sellers will not accept an offer on their home without an accompanying pre-approval (unless you’re fortunate enough to make an all-cash offer, that is). Because there is market competition, sellers want to have confidence in your ability to finalize finance and purchase the property at the agreed-upon amount and within the timeframe specified on the contract.

Suppose a seller receives two offers, one with a pre-approval and one that’s slightly higher but doesn’t have a pre-approval. In that case, they may even accept the lower offer with an accompanying pre-approval because they see it as a lower-risk offer. 

Close faster with a pre-approval from a trusted lender.

With a valid pre-approval in hand, you have already started the mortgage underwriting process by supplying all your personal documentation. Therefore, most can jump straight into appraisals and inspections, ultimately saving tons of time.

When you work with a trusted lender who has an experienced lending and underwriting team, they will have the capacity to close and get you into your new home faster with fewer chances of delays. Unfortunately, lenders who are not experienced or haven’t earned consumer trust can often delay a purchase which can cost buyers money or even lose them the house.

How to get a mortgage pre-approval letter from a trusted lender.

The best way to get pre-approved is by working with an experienced mortgage broker like The Simpson Team. We help collate your personal information, review your finances, run a credit check, and help complete the pre-approval application. It’s our job to spot any potential hurdles and to make sure that the process goes as smoothly and quickly as possible so that you can start house shopping. In addition, the Simpson Team only works with trusted lenders so that you can be confident in your finance team.

Once you have your mortgage pre-approval, we always recommend that buyers avoid making any significant changes to their finances, such as taking out a new credit card or car loan. Instead, focus on getting into your home, and then you can start taking on other financial obligations.

Are you ready to start the mortgage pre-approval process? Apply now or schedule a call with The Simpson Team today.  

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