At the end of the first quarter of 2021, the real estate market is very competitive and since mortgage rates are still at historic lows, many people are making offers on homes.
Since there aren’t many homes on the market, they are selling quickly. One way to set your purchase offer apart is to accompany your offer to the seller with a mortgage pre-approval versus just a pre-qualification. This gives the seller confidence your loan will be solid and takes away any guesswork and anxiety about what offer they should accept.
With a pre-approval, the underwriter issues an actual approval so that the only other items needed to close are the appraisal, title work and the purchase agreement. It shows the buyer you’re not just willing to purchase, your income and finances have already been verified as to your ability to afford the mortgage on that home.
In comparison, a pre-qualification is really just an analysis of the potential loan by the lender but it has not been reviewed by an underwriter.
The pre-approval letter carries much more weight with the seller, so in a completive housing 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 several lenders that offer a TBD Pre-Approval, as not all lenders will offer this service. If you are in the market to purchase a home, call Indigo Mortgage Colorado and let us secure a Pre-Approval for your home purchase offer.