Real Estate Word of the Day: Pre-Approval

A pre-approval is essentially a lender's conditional commitment to provide you with a mortgage loan of a specified amount based on your financial situation and creditworthiness. It's different from pre-qualification, which is a more informal assessment of your finances.

To obtain a pre-approval, you'll need to submit an application to a mortgage lender or broker, such as our preferred lender Think Mortgage. They'll review your income, assets, credit history, and other financial information to determine how much they're willing to lend you.

One of the most significant benefits of getting pre-approved is that it gives you a clear understanding of your budget. Knowing how much you can afford helps you narrow down your home search and saves you time by focusing on properties within your price range. In a competitive real estate market, having a pre-approval can give you a competitive edge over other buyers. Sellers are more likely to take your offer seriously if they know you've already been approved for financing.
With a pre-approval in hand, you can negotiate with sellers from a position of strength. They'll see you as a serious buyer who is ready to make a move, which could give you leverage in price negotiations. Since much of the legwork for securing a mortgage is done during the pre-approval stage, the overall mortgage process tends to move more quickly once you've found a home. This can be especially advantageous in a hot market where properties are selling fast.
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Looking to buy or sell your home on Staten Island? For all your real estate needs, look no further than Tom Crimmins Realty! Give us a call at (718) 370-3200, and we can provide you with professionally-trained agents who are flexible to all that you’re looking for!

 

Posted by Tom Crimmins Realty on

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