Preapproval Letter
A mortgage preapproval will give you an advantage when making an offer on a home. A preapproval letter is a statement from a lender indicating their tentative willingness to lend you a specific amount of money, based on a review of your finances, credit history, employment, and debt-to-income ratio.
For sellers, a preapproval shows that you’re a serious buyer who has done their work and is financially prepared to move forward. It can also help your offer stand out by signaling that the transaction is more likely to close smoothly and on time.
Preapproval benefits you as well. It helps identify and address any potential financial obstacles early in the process. Whether that means paying down your debt or improving your credit score, you’ll have time to make adjustments and strengthen your position before you start the homebuying journey.
Increase Down Payment
While it may seem challenging, increasing your down payment can help you stand out from other buyers. A larger down payment demonstrates financial stability and strong commitment, giving both sellers and lenders great confidence in your ability to close the sale.
From the buyer’s perspective, a higher down payment often comes with additional benefits. It can lead to better loan terms, potentially lower interest rates, and reduced monthly mortgage payments. Over time, this can lower the total amount of interest paid and make homeownership more affordable.
Getting a head start on homebuying can make all the difference. By securing a preapproval and strengthening your down payment early, you’ll be better in a better position and prepared to compete confidently, move quickly, and make the most of opportunities when the right home comes along.
Are you looking to start your home search off on the right foot? Our mortgage team has more than 100 years of combined experience helping people purchase the home of their dreams. Start your mortgage application today.