Why A Pre Approval?
By discussing with a loan consultant, and understanding the various loan options, you will find which mortgage product best meets your needs and how much you can afford.
Sales Agreements often require buyers to apply for financing within a given time period, usually, seven to 10 days. By meeting with a loan consultant in advance and identifying mortgage programs, it won’t be necessary to quickly find a lender, check credit, and rush into a mortgage decision right after your offer was accepted.
“Pre Approval” means you have met with a loan consultant, your credit files have been reviewed and the loan consultant believes you can readily qualify for a given loan amount with one or more specific mortgage programs. The loan consultant will provide a pre approval letter from Sail Mortgage, which shows your borrowing power. The fact that it says it is from Sail Mortgage says three additional things to the seller and the listing agent: 1) it is a local lender that knows this market; 2) there is over 20 years worth of reputation standing beside you in this transaction and you can expect to receive the mortgage you were promised and on time; 3) there is a good chance that the parties have worked together in the past and will work together in the future.
Although not a final loan commitment, a pre approval letter from Sail Mortgage can be shown to listing agents when bidding on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. This information is important to owners since they do not want to accept an offer that is likely to fail because financing cannot be obtained.
The loan consultant will carefully review your financial situation, including your credit report and other information. The loan consultant will then suggest programs which meet your needs. For instance, a first-time buyer may qualify for FHA mortgage programs with little money down and low interest rates, while a repeat purchaser with more equity may select a 15-year loan and the lower overall interest costs it represents.