Now, in the summer of 2021, the real estate market is extremely competitive, homes are selling very quickly, and at the same time, mortgage rates are at historic lows. That means that many people are making offers on the same home.

One way to set your offer apart is to accompany your offer to the seller with a mortgage pre-approval vs just a pre-qualification. Knowing that your loan is already in place for that purchase price gives the seller confidence the loan is solid and takes away any guesswork and anxiety about what offer to accept.

With a pre-approval, the underwriter issues an actual approval so the only items needed to close 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 a few lenders that offer a TBD Pre-Approval; not all lenders will offer this service. So, if you are in the purchase market, call Indigo Mortgage Colorado and let us secure a Pre-Approval for your home’s purchase offer. We do this service free of charge.