A key component to the home buying process is the pre-approval. What is this document and why is it needed?
Homebuyers should start the “process” well before putting a bid/offer on a home (unfortunately this is not always the case). A homebuyer should understand what they can afford, the overall mortgage process, and the available products in the marketplace. This is where a licensed loan officer comes in.
A licensed loan officer will meet with prospective homebuyers to review such elements as credit, income, job stability, assets, etc. They will also review available products & the overall mortgage process. Analyzing such components allows a borrower to understand what to expect and what they can afford. Homebuyers can now shop with “knowledge.”
Once the homebuyer wants to put an offer in on a property, the loan officer will issue a pre-approval, stating that they have reviewed credit, income, assets, job stability, etc. The loan officer is stating that the client has the ability to “purchase” the home. By no means is this a commitment to lend. This will be issued by the lender. Pre-approvals will usually last for 30 days.
If you are in the market, or will be in the near future, call JFC Funding, LLC so we can help you understand the market, overall process and your purchasing power.