How to get a pre-approval letter and why it’s important?

One of the first questions a buyer usually asks is how to get a pre-approval letter. When you first start discussing with family and friends your interest in buying a home, oftentimes you will hear about pre-approval. Nowadays, a pre-approval is key when searching for homes for sale in Central Ohio. Sellers do not want to go under contract with a buyer who has not been pre-approved for financing nor should a buyer want to search for homes without knowing where they stand financially.

A pre-approval is where a lender takes a preliminary look at your finances and credit then issues a pre-approval letter which tells home sellers and listing agents how much financing a buyer can obtain. I advise my Clients to talk to a lender and get a pre-approval letter before searching for homes. Sure, we can put a plan together and get the MLS search updates arranged but I want to ensure my Clients don't fall in love with a home which is out of their price range or lose out to another buyer who already has their pre-approval letter in place. It happens and with many agents it happens often.

Most lenders I've worked with can complete a pre-approval within 24-48 hours which is pretty fast considering the big picture. I know it's exciting to start on a real estate adventure but it's always worth preparing and getting a pre-approval letter before venturing too far down the path to finding a new home. In today's fast moving Central Ohio real estate market, it's never been more important to ensure a solid home buying plan is put in place and executed. If you have more questions about the pre-approval process, would like to get a pre-approval completed or have other questions about financing and real estate in general, feel free to reach out anytime!

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