Loan Preapproval: Why You Need to be Preapproved
Do you feel ready to start looking for your first house? Well, the first step of any home-buying experience is to get prequalified for a loan.
Most people are going to need a loan in order to purchase a house. If you are one of the many people who fall into this category, then there are some things you need to know.
The seller wants to get the best deal they can and they want to get it fast. If you fall in love with a home and put in an offer, the seller wants to be assured that you can pay for the house. This assurance comes in the form of pre-approval for a loan. The seller doesn’t want to take their house off the market only to find out that you cannot qualify for a loan and thus won’t be able to pay for the house.
To get a preapproved you need to talk with a lender, usually a mortgage lender. They will review your income, debts, assets, and credit scores to determine how substantial of a loan they are willing to give you. If you qualify for the loan, they will preapprove you for the loan. You can then prove to the seller that you can pay the offering price you made.
Once you are preapproved, you want to be sure not to do anything that could change your financial status. Don’t go buy a new car, or change jobs, or cause anything to happen to your credit scores. Any of these changes could cause the loan to be denied even after preapproval. The approval only stands if the conditions of your approval remain unchanged.
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Dan Parisi is CEO of Coffee Real Estate
916 481 8106
Real Estate agent & Mortgage expert
BRE 01923081 NMLS 997987