When the decision is made to buy a home, excitement takes over as buyers drive around town or go online searching for their dream home. Some even go as far as finding a home and putting down a security deposit or signing a contract — all before even contacting a lender to make sure they are pre-approved for such a large purchase. You can imagine how heartbreaking it would be if you were to finally find your perfect home, only to learn you don’t qualify for a mortgage to buy it. Or, that you passed up on a home you believed was too expensive, only to discover that you could have been pre-approved to purchase it.

For these reasons and more, getting a mortgage pre-approval is is the first step when looking to buy a home, but what does an interested home buyer need to get pre-approved?


Mortgage Pre-Approval Letter

The pre-approval letter is actually a benefit to the buyer and everyone involved in the real estate transaction. It offers true peace of mind and helps you narrow down your home search. Most lenders do not charge for the pre-approval process. If you’re working with a lender who does charge a fee, that is your signal to turn and run. Most likely there will be many more fees during the process if you use that lender.

Now the question arises: How strong is that pre-approval letter? There are lenders who will simply ask you a few questions on the phone and give you a pre-approval letter just to secure your business. This could prove to be troublesome down the road.

Imagine getting in the car with a real estate agent armed with your so-called “pre-approval” letter and then finding and falling in love with a home, only to find out that the letter you were carrying around was not worth the paper it was printed on.

It is so important to find a mortgage lender with a reputation in the real estate and mortgage industry of having a valid pre-approval letter. You can often tell that you are getting a valid pre-approval by the amount of information they collect from you. Having a valid pre-approval is a huge advantage for you and carries a great deal of weight in the real estate community. Real estate agents know they are not wasting their time showing you a home you cannot afford. Plus, if there are several offers on a home, a seller and their agent will seek the buyer with the most valid pre-approval letter.

CEO of RP Funding, Robert Palmer designed the Validated Pre-Approval Program. This process involves gathering as much information on a buyer up front, and then having a second department go over that information with a fine tooth comb to make sure that buyer can qualify for a loan.


Mortgage Pre-Approval Documentation

Many buyers are so excited when they are ready to purchase a home that they don’t want to give their tax returns, W2 forms, and copies of pay stubs. But again, without a strong, validated pre-approval, you’re merely spinning your wheels when looking for a home.

For a lot of people, the mere thought of compiling all the documents needed to get pre-approved can be a bit intimidating. However, the more information that the mortgage lender can gather up front, the better your odds are of getting an affordable mortgage that carries no lender fees and will close on time with no surprises.


Ensure a Worry-Free Closing with a Validated Pre-Approval

If you’ve made the decision to buy a home, contact a reputable mortgage lender like RP Funding. During your no-obligation phone call, your loan officer will ask for financial documentation — which will be kept strictly confidential — to validate that your offer can be accepted by the seller, and to ensure your buying process goes as smoothly as possible.

If for any reason you have gone through the pre-approval process and been denied a mortgage, click here.