Why a Preapproval is Important
One of your first important steps in buying a home is getting preapproved. In this competitive market, any serious buyer needs a lender’s preapproval so they are prepared when it is time to make an offer. A lender preapproval letter tells realtors and sellers: “We are preapproved and empowered to make an offer!”
- You will know your ability to purchase a home before you shop, so you know what price ranges you could be looking at.
- Since your documentation for the preapproval has already been completed, it can speed up the process for you to make an offer. Most realtors do require the preapproval letter to be submitted before they can present your offer so the seller knows that the buyer may have the ability to complete the purchase transaction.
With a preapproval, the lender verifies the borrower’s information and documentation to determine how much they would be willing to lend to that borrower.
With a prequalification, the lender relies on information provided by the buyer to estimate how much the borrower could qualify for. No documentation is collected, so you are not prepared if you want to make an offer and need a preapproval letter.
A preapproval is not a final loan commitment but it allows you to proceed with an offer and it helps speed up the underwriting and loan approval process.
Let Us Help You Prepare
Completing the mortgage prequalification process allows you to know your ability to purchase a home before you shop. You can expect our home loan officers to deliver personal, responsive, and attentive service whether you are a first-time homebuyer or stepping up to that next home.
Don’t miss out on your dream home – be prepared!
Get started today on your free prequalification by filling out First National’s online mortgage application.
Contact a Mortgage Lender
If you have any questions regarding the preapproval process, please get in touch with one of our knowledgeable staff.