In 2020, even during a global pandemic, the real estate market is very competitive and with mortgage rates at historic lows, many people are making offers on homes.
We are in a time when it’s a “seller’s market”, as the number of homes on the market is fairly small. One way to set your offer apart is to accompany your offer to the seller with a Mortgage Pre-approval versus just a pre-qualification.
A mortgage pre-approval gives the seller confidence that your ability to obtain a mortgage loan is solid, so it takes away any guesswork and anxiety about which buyer’s offer to accept.
When a pre-approval is done, the mortgage underwriter issues an actual approval based on the buyer’s provided financial documents, so the only item needed to close the home loan is the property appraisal, title work, and the purchase agreement.
A pre-qualification, on the other hand, is only an analysis of the loan by the lender, before being actually seen and evaluated 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 you have a Pre-Approval.
Because Indigo Mortgage is a mortgage broker, we have access to a number of lenders who offer a TBD Pre-Approval as not all lenders will offer this service. When you are in the market to purchase a home, call Indigo Mortgage and let us secure a Pre-Approval for your purchase offer.