Even now as we all deal with a global pandemic, the Colorado real estate market remains very competitive. With mortgage rates at historic low interest rates, many people are making offers on homes.

This is a “seller’s market”, when the number of homes on the market is fairly small versus the amount of people trying to buy. If you’re currently looking to purchase a home, a good way to set your offer apart is to accompany your offer to the seller with a Mortgage Pre-approval, not just a pre-qualification.

The mortgage pre-approval gives the seller confidence in your ability to obtain a mortgage loan, so it takes away any worry that your offer would fall through if you’re unable to be approved for the purchase.

When a pre-approval is completed, the mortgage underwriter issues an actual approval based on the buyer’s provided financial documents. Then all that’s needed to close the home loan is the property appraisal, title work, and the purchase agreement.

A pre-qualification, which is different that the pre-approval, is only an initial analysis of the loan by the lender, before it’s 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 are pre-approved for the loan amount needed.

Because Indigo Mortgage Colorado is a mortgage broker, we have access to a number of lenders who offer a TBD Pre-Approval; not all lenders will offer this service. When you are in the market to purchase a home, call Indigo Mortgage Colorado and let us get you pre-approved for your purchase offer on a home.