Loan Preapproval is an essential first step for all first-time home buyers.
It may seem like an agent’s benefit – which is a common misconception. Truth be told, a loan preapproval’s main purpose is to prove the credibility of the buyer to the seller.
But little to most first time buyer’s knowledge, it also has its own set of advantages.
What more can a loan preapproval letter offer? Read through our list below.
3 Loan Preapproval Advantages for First-Time Buyers
- Bargaining/Negotiating Influence
With a loan preapproval, you automatically gain the legitimate influence over the likely of a sale to accept your offer. Your chances are higher regardless if the offer is less than the list price. This is because the seller easily trusts your interest over their home and assumes that it will be sold to a person with good qualities and capabilities, as the preapproval letter suggests.
Your prospect home can easily be dismissed from the market and be on a pending status with your party.
Although a loan preapproval letter doesn’t necessarily stand as a qualification letter, it offers great credibility in scoring homes.
- Gain Assurance and a more peaceful sleep
Finding your perfect home can be great, especially knowing that no one can take it away from you by using the excuse of simply not qualifying for it. Last-minute loan surprises can no longer sneak up on you and this can minimize your anxiety and offer a better quality of sleep.
Getting an offer automatically is a big step in finally closing your home.
- Faster Closing Period
With a loan preapproval letter, a typical 30-day closing period can be shortened to an estimate of 2-3 weeks.
This is due to the fact that there’s no window period of your loan application – meaning the lender can speed up the entire processing procedure. Another bonus is, appraisals can be requested almost immediately.
Mortgage approval is typically the longest contingency in a purchase contract. But it is your job to claim a preapproval letter also to your beneficial before beginning search as sellers see this as a certificate of competency above all else.
Just remember that your records such as your complete loan application, bank accounts, credit reports, and employment verification are only a few of that lenders will review before considering your loan preapproval letter.
Buy Like Rent is a Real Estate Agency based in Florida with an experience for over 50 years in rent-to-own, buy and sell, property investment, real estate brokerage, and mortgage banking operation services.
Buy Like Rent is your dedicated Real Estate broker with over 50 years of experience in selling residential real estate, buylikerent homes, and property investments.
