How nessesary is it to get a mortgage pre-approval if it is not your first home buying?

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Our house is for sale and we want to start looking for a new one. I know 1st time buyers should get a mortgage pre-approval before looking at houses, But if this isn’t our 1st house, how necessary is it for us to get one?

9 Comments
  1. Reply
    Suzy
    June 29, 2011 at 5:12 pm

    It’s just as important. Getting pre-approved is a real time saver. It lets you know which homes you can afford and sellers know that you are serious when making an offer.

  2. Reply
    Luke 6:37
    June 29, 2011 at 6:09 pm

    Unless you are paying with cash it’s very necessary. Like mentioned above it saves a lot of time and could be the difference in you losing a home you really like to another buyer because they already took care of the money part.

  3. Reply
    Han_dang
    June 29, 2011 at 6:56 pm

    always always always go for the pre approval, when you are pre approved they cant deny you no matter if you come back 6 mths later. and say im ready for the loan. prequalify only means youre ready “at this moment” or “while you are talking to the lender”. pre qualify mean as with your current job, spending habits, and debt to income ratio you are able to afford the loan, but let say next week you get demoted and your your debt to rario gap narrows. you may not qualify this time. when youre pre approved the deals is bascally closed so no matter if youre demoted or not you’ll still get it.

  4. Reply
    RM
    June 29, 2011 at 7:43 pm

    These days there’s more people trying to buy houses who can’t than truly qualified borrowers.

    In order for the sellers of your future home to feel more secure negotiating with you, I’d get pre-approved. That may make them more lenient to go down more to get it sold since they know you won’t have problems getting financing.

  5. Reply
    Potato Head
    June 29, 2011 at 8:02 pm

    Seller’s generally require you provide evidence that you can afford the home prior to or soon after entering into a contract. Evidence is a pre-approval letter for those using a mortgage and financial statements for those using cash.

    If you tried to buy my home and you could not provide upfront evidence that you could afford it, I would ignore your bid and go with someone else.

  6. Reply
    Landlord
    June 29, 2011 at 8:28 pm

    You need it to make an offer, almost no one will even look at offers w/o it these days.

    It takes maybe 30 minutes, not a big deal.

  7. Reply
    9 daughters
    June 29, 2011 at 8:30 pm

    Pre-approval is always a good idea because anyone at any time could try to buy a home they can’t afford and that just makes things embarrassing and disapointing. Knowing what you can afford just isn’t a matter of your personal financial situation either. Lender’s requriements change too.

    For example, a few years ago lenders were approving loans to almost anybody. Now, people with more income, more down payment, and better credit scores than those getting loans two years ago are finding themselves unable to get loans for homes that cost less.

  8. Reply
    massomia
    June 29, 2011 at 9:21 pm

    It’s essential. It’s most likely the largest and most important purchase of your life. It’s been several years since you have applied for a mortgage and lending has changed. Especially for those who are in business for themself or have stated incomes. It’s a great opportunity to pre-screen your credit bureau report to make sure there are no surprises that have popped up over the last several years.

    In terms of negotiation. You will have no negotiation power with out pre approval. I would say pre-qual means nothing. It doesn’t assure you a loan on closing day. There is an entire underwriting process for full loan approval. I’ve went into several lenders and had a pre-qual typed up without them even asking me for income, assets, or pulling a credit report. Do yourself a favor. Take all your documents in to the lender and have them pull a credit bureau. In the end, you’ll be happier and you will be able to negotiate a better deal with this kind of leverage. Good luck.

  9. Reply
    Jon S
    June 29, 2011 at 9:34 pm

    Yes. The approval letter is really not for you…it’s actually to show your seller and assure them that you can buy the home or condo.

    Since you are selling your home you should require your potential buyers to show you a letter of approval. In fact, in today’s times I would encourage you to actually call the mortgage person. Did they really pull credit and verify income or did they just give a letter without verification.

    Finally, since you’re also buying a home you want to meet with a licensed professional and make sure you truly qualify for a home loan. There have been lots of changes recently and sometimes having a good credit score doesn’t guarantee you a home loan (especially if you are self employed!)

    For more info, please visit http://www.mylendingplace.com

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