Experts consider Mortgage Pre Approval as the verification of the borrower by lender, which determines whether the borrower is eligible for loan or not. Unlike prequalification, Pre Approval Home Loan is not just discussed at a meeting; it requires authentic information with proof, which can take several days. It also helps the lender to know exactly how much he will lend to the borrower.
Knowing what you can spend on a house beforehand has another benefit. You can save yourself (and your family) a tremendous amount of time look at homes that are outside your price range. If you have already picked out what you believe is the perfect house for your life circumstances before getting amount approved for a mortgage, these is the unfortunate possibility that you will not be able to afford it. This, itself, can be heartbreaking.
A real estate brokers is going to love the fact that you already have pre approval home loan and will work very hard for you to find the home you want! Why? Because they have a qualified buyer with the money in their pocket to buy! All they have to do is find a house that meets your requirements, in the price range you are approved for and they have a deal!
Obtaining pre-approval for a mortgage loan can have an affect on your relationship with the real estate agent with whom you are working. The agent is more at ease helping you find that house when he knows that you have this pre-approval status. They work to ensure that the original owner of the home is compensated and given the best offer. As a new buyer with pre-approved home loan status, you are more attractive to many agencies. Having that financing secured beforehand makes a big difference; it increases the likelihood that you will buy a house through them and they will get a commission.
When you have a Mortgage Pre Approval, you will know your loan limit. Once you know how much loan you can get; then it is time to find a good home in your price range. After finding the home, there is one last step, which is getting mortgage. For this process, people often engage with Mortgage Brokers who help them seal their deal on best rates available along with their own commission. Conditional Loan Commitment should be issued within a week on a purchase transaction if you had a proper mortgage pre approval. If not then it could take 2 weeks. This whole process of getting a mortgage can cast you up to 30 days at least.Google+