During the summer of 2021, we continue to see an extremely competitive real estate market as homes sell very quickly, and at the same time, mortgage rates are at historic lows. That means that many people may be making offers on the same home.
An excellent way to set your offer apart is to accompany your purchase offer to the seller with a mortgage pre-approval, which is much stronger than just a pre-qualification. Knowing that your loan is already in place for that purchase price lets the seller have confidence the loan is solid. It takes away any guesswork and anxiety about which offer to accept.
With a pre-approval, the underwriter issues an actual approval so the only items needed to close the loan are the appraisal, title work, and the purchase agreement. In comparison, a pre-qual is really just an analysis of the loan by the lender but has not actually seen by an underwriter.
The Pre-Approval letter carries much more weight with the seller so in a completive market when a seller is reviewing multiple offers, make sure yours has a Pre-Approval. Because Indigo Mortgage is a mortgage broker, we have access to several lenders that offer a TBD Pre-Approval; not all lenders offer this service. So, if you are preparing to purchase a home, call Indigo Mortgage and let us secure a Pre-Approval for your home’s purchase offer. We provide this service free of charge.