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Article Title:
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Reasons to Be Pre-approved

Article Description:
====================

Taking the time to apply for a mortgage before beginning your
home search and being able to make offers based on a pre-approval
can speed the buying process and give you additional negotiating
power.


Additional Article Information:
===============================

322 Words; formatted to 65 Characters per Line
Distribution Date and Time: 2007-01-18 10:00:00

Written By:     Clint Wooley
Copyright:      2007
Contact Email:  mailto:[EMAIL PROTECTED]



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Reasons to Be Pre-approved
Copyright (c) 2007 Clint Wooley
HomeMax
http://www.homemax.org



When you apply for a mortgage prior to finding a property, your
lender can "pre-approve" your financing based on your credit,
income, and asset documents. It is important that you make sure
that your credit file has been underwritten, not simply
"pre-qualified." With a pre-approval, your lender is stating
that they have reviewed your credit, verified your income and
assets required for the financing, and the only conditions that
could become an issue pertain to the property.

Typically, your lender will issue a pre-approval up to a maximum
amount based on the program and terms you qualify for. Having a
pre-approval in hand will aid you in several ways:

1. Negotiation -You will have better negotiating power due to the
"cash" factor. The seller's agent will advise the seller that
your offer is not likely to tie up their home for weeks only to
fall through due to a loan declination.

2. Confidence - Being pre-approved will let you know what your
rate and terms are, so you will know exactly (with the help of
your Realtor) what your down-payment and monthly payment will be
when negotiating for your new home.

3. Speed -Being pre-approved means much of your mortgage file is
already complete and has been reviewed by an underwriter. In some
cases this means you might be able to close very quickly after
placing a property under contract. Sellers and agents appreciate
this, and will sometimes make concessions because of it.

Waiting until after finding a property to apply for a mortgage
loan can cause delays in closing, raise doubts and fears about
your ability to buy in the sellers and agents mind, and can cause
an embarrassing situation in the event you are declined or unable
to qualify for the amount you are seeking. Pre-approvals are
important to everyone involved. The seller, both agents, and you,
the buyer all benefit. Talk to a lender before starting your home
search. 




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Clint Wooley is co-owner of Sunscape Rentals 
and Sales, and HomeMax.org, a helpful source 
for information, tips and articles for first 
time home buyers. HomeMax offers free 
Realtor referrals and Lender referrals. 
HomeMax Case Managers will help guide 
you through the home buying process. 
http://www.homemax.org


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