Why is pre-approval important? Do I have to go back to the same lender that originally approved me?
Pre-approval is the first step in looking for looking for a home. Yes, even before hiring a real estate agent! The pre-approval letter that you get from your lender shows that the lender has verified your income, pulled your credit, verified your assets to close and for reserves and deemed them all okay for a loan of a particular size.
Part of this process should be your lender sitting down with you and talking about your finances and the mortgage payments you would be comfortable with, based on your income and down payment. This conversation will help you determine a purchase price that will fit into your finances and future plans. We want to make sure any offer you put on a home is something that is comfortable for you to make and will not put you in a financially irresponsible place.
You do not have to work with the same lender that pre-approved you; however, it can speed up the process. Since the lender already has your documentation, credit report and other information and it has already been reviewed by an underwriter (which at some big banks could take weeks), you’re much closer to completing the loan application and receiving funding.
That being said, your relationship with your lender should be a personal one, since they are the ones with the knowledge and experience to make sure you are put in the best position. Resubmitting paperwork and an extra week of time is nothing if it gives you peace of mind and you are treated in a way that lets you know your lender has your best interest in mind.
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Related posts:
- The Difference between pre-approval and pre-qualification.
- Pre-Approval & Pre-Qualification
- It’s Time To Re-Approve Your Pre-Approval
Michael Haigh has 20+ years of professional experience in the banking and mortgage industry. He has the knowledge, education, and dedication to get you the best loan for your situation, answer your questions honestly and completely, and make your mortgaging experience a pleasure. His reputation includes being the number one lender in the country for CitiBank for 9 years, then at Chase for 1 year and now with WJ Bradley since August of 2009. This is because of the quantity of loans, myriad of people he's helped, and his dedication to helping his clients find the perfect loan for them.
