What is a pre-approval letter? It’s one of the most important parts of the home buying process, this letter shows that the buyer has been pre-approved by a lender to buy their home for a specific loan amount. Most Orange County Realtors will make sure that their clients are pre-approved before they move forward with the process of helping them to find the that’s right for them because without the pre-approval letter, there is no point in looking for homes. It is similar to shopping without your wallet. You might find something that appeals to you, but there won’t be any way to fund that purchase.
The Golden Ticket
A pre-approval letter can be called a “golden ticket” because, it shows that the homeowner can finally purchase a home for a specific amount of money and there is nothing that will be able to stand in their way of getting into the home of their dreams.
Pre Approval Letter Vs. Pre-Qualification Letter
Many people sometimes confuse the pre-approval letter with a pre-qualification letter and they both are completely different from each other. A pre-qualification letter means that the a lender has verified that the buyer has the credit and income to buy a home but it’s typically the first step before the buyer goes through before they get the pre-approval letter.
Importance For The Seller
When a seller sees that the homeowner has a pre-approval letter they will be more inclined to accept the buyers offer because, they know that the buyer has been approved for a loan and isn’t just submitting an offer “blind” before they’ve been pre-approved for a mortgage loan.
Besides sellers, Orange County realtors also feel more comfortable working with a buyer who has received a pre-approval letter, especially if it’s from a local Orange County lender because, it will enable them to make a stronger impression on the seller if they can confirm that they’ve worked with the buyers mortgage lender in the past.
To learn more about pre-approval letters, how they impact the Orange County home buying process, and for a list of lenders who may be able to approve you for a loan, contact Fred Sed & Associates today at (949) 272-0125.