Getting Pre-Approved for a Loan

         by Carol Van Wagner - Bristow

Lenders pre-approve buyers for loans before they begin house hunting.  Give the loan officer information about your assets, income, and debts, so he can tell you what price range to consider.  He will do a credit check and work with the lender to address any problems.

Pre-approval can make your offer more attractive to the seller when you find the home you want.  Conditional loan approval is even better. See if your loan officer can get a commitment from a lender while you are searching for homes, before you make offers. Such approval may be subject to appraisal of teh home, title search, and other issues that will arise during escrow.

Occasionally multiple offers come in on a house, and you may find yourself competing with other buyers.  In this case, your offer is more appealing if you include a pre-approval letter.  If you have conditional loan approval – in writing from a lender – this is even better.  The pre-approval or approval processes, if completed ahead of time, will also save you time and hassle by eliminating from consideration any homes for which you would not qualify.