Why Do I Need to Get a Mortgage Pre Approval?

Buying a home

getting a mortgage pre-approval


I hate to answer my own question with a question . . . but, are you serious about buying a home? If so, keep reading, as I’ll uncover the reasons why getting pre-approved for a mortgage is critical when you’ve made the decision to buy a home. This applies to you as a first-time home Buyer or as a repeat home Buyer. 


Why Pre Approval?

First and foremost, you want to let any home Seller know that you’re well qualified to buy a home and that you’re serious about buying a home: you prepared by doing proper planning for home ownership and you can afford the home they’re selling.

A pre-approval is a letter than can set you apart from other home Buyers presenting their offer without a solid pre-approval letter. Your offer will be held in high regards with your offer being perceived to be of greater value due to your ability to show the home Seller that you’re able. Yes, that’s it; you’re financially able to buy their home. A good sign for any home Seller.

Different local markets will further express upon the importance of a pre-approvgetting a mortgage pre-approvalal, particularly in a Seller’s Market.  What is a Seller’s Market?  A Seller’s Market, as the name implies, is when the market favors Sellers (sorry Buyers).  It’s a time when Buyers need to be on top of their home buying game if they want to secure the home they’re considering buying. A Seller’s market highlights too few homes to meet the need of Buyers, so Buyer competition will be fierce.  Your offer needs to shine above the competing Buyers and a pre-approval is just one way in which to let it shine!

A pre-approval gives the home Seller a reason to select your offer.

Lastly, a pre-approval makes it easier on your emotions. There’s nothing worse than falling in love with a home only to find out later that you can’t even afford the home.  With a pre-approval you know exactly what you can afford and won’t be looking at homes in the wrong price range that only are apt to provide great heartache. Get pre-approved.


What is a Pre Approval?

A pre-approval is a Lender provided, written letter that indicates your ability to finance a home purchase.  The letter will detail that you have been conditionally approved for a mortgage loan based upon a review of your assets, income and debt. It will detail such items as your base loan amount, type of loan program, the sales price for the home you can purchase, and the property address to be determined once you find a home to buy.  Typically it will include the length of the mortgage loan term and can include your rate of interest and could even include an estimate of your monthly payments details that include principal, interest, taxes, homeowners insurance and if applicable; mortgage insurance, flood insurance and any homeowner’s Association fees.

In addition, the letter will conclude that the approval is subject to such items as your final verification of your employment & income prior to closing, the funds required to close on your home purchase, that the home you buy must appraise to support the purchase purchase, no change in your credit profile, a satisfactory Title Policy and final underwriting, to name a few.

This pre-approval subject to conditions, will be based upon financial documentation that you provided for review, such as the following:  

  • financials needed for a mortgage pre approvalinvestment account statements
  • bank statements
  • paystubs and/or any income records
  • W-2’s
  • tax returns
  • retirement account statements

You’ll also provide authorization to access your credit report. Careful calculations are considered to assess your debt-to-income ratio.

The letter confirms that your assets, income and creditworthiness have been reviewed and based upon the Lender’s findings, you are a good a candidate for final loan approval.  Keep in mind that this does not guarantee your ability to get a mortgage, but rather enhances the strong likelihood of getting a mortgage.

These details as described, shows that the proof of your ability is needed prior to receiving a written pre-approval letter, unlike a pre-qualification letter that simply reveals a conversation with no verification of assets, income or debt determined.


Who needs to get a Pre Approval?

A mortgage pre-approval isn’t limited to a few, but rather anyone who wants to buy a home. If you’re looking to buy a home in Coral Springs Florida or looking to buy a home in Boca Raton Florida or anywhere nationwide for that matter, you’ll need a pre-approval letter.  If you’re a first-time home Buyer do you need to get pre approved? Yes.  How about if you’re buying another home? Yes. First, second, third, prior Short Sale, prior Foreclosure, any home Buyer needs to obtain pre-approval for optimum success with buying a home.


When do you get a Pre Approval?

Have you made the decision to buy a home? Have you made all the preparations required to get your credit in order? Have you saved money towards a down payment, closing costs and simply for being a new homeowner? If you’ve answered “yes”, then now is the time to get a mortgage pre-approval before you even take a step inside a home you think you like or might like.

A pre-approval is one of the most important steps of buying a home. It’s also one of the first things you do when buying a home.


Where can I get a Pre Approval?

An experienced Mortgage Broker (Lender) can get you the Mortgage pre-approval that you mortgage lending this wayneed.  The Realtor that you hire to assist you in your home search, should have a few Mortgage professionals who she/he can refer you to for your final selection. You’ll discuss their loan programs and rates. Or simply do your homework in researching for a Lender who can assist you.  If in your search, you have a telephone conversation or a brief in person meeting and they’re ready to give you what they call a pre-qualification letter without ever reviewing your financials, run! Keep looking. This is not the Lender for you. I’ve described above what it is you need to be pre-approved for a mortgage and a pre-qualification without reviewing your particulars, is a waste of paper and time. In addition, if you’re thinking about selecting a Realtor and they haven’t recommend that you receive a pre-approval letter before you start looking at homes, then think again about this Realtor’s expertise.  



Pre Approvals aren’t optional if you’re serious about buying a home. You need to know how much you’re able to afford and ultimately how much money you can offer the home Seller. And simply said, it’s just part of the facts about buying a home if you want to have any kind of success at buying a home.

A pre-qualification gets you nowhere. A pre-approval can get you the home you love. Now go buy a home!


Related Articles:

To escrow or not by Madison Mortgage Guys

Mortgage mishaps by Frederick Real Estate online

Avoid Buyer’s remorse by Las Vegas Luxury Home Pro

Mortgage pre-approval and pre-qualification by Maximum Real Estate Exposure

Knowing about mortgages by Ryan Fitzgerald

Quick home tips by Cincinnati Real Estate  

Selecting a Mortgage Lender by Selling Warner Robins

How to get pre-approved for a mortgage by Credit.com


Book an appointment now to learn more about getting a Mortgage Pre Approval when buying a home in Southeast Florida. Call/Text Lynn at 954-464-1100 or email Lynn at LynnP@ImagineYourHouse.com


Today’s article Why do I need to get a Mortgage Pre Approval?” written by Lynn Pineda. You’ll find Lynn selling homes in Southeast Florida in the cities of Boca Raton, Boynton Beach, Coral Springs, Delray Beach, Coconut Creek, Deerfield Beach, Margate, Parkland, Pompano Beach, Tamarac, Sunrise, Plantation and Ft Lauderdale areas within Broward and Palm Beach counties.

Lynn Pineda, a licensed Southeast Florida Real Estate Agent serving Southeast Florida for over 10 years.  Keller Williams Coral Springs Realty. Real Estate Promises Delivered. You can speak with Lynn by calling/texting her at 954-464-1100 or you can email her at: LynnP@ImagineYourHouse.com if you need to buy or sell a Southeast Florida home. Your local, trusted professional when it’s time to buy or sell a home.  Real Estate promises delivered.  Sept 17, 2015.

Recommended Posts
Showing 12 comments
  • HelenChong

    Oh I guess it should be like this only. This makes it easy for the agents to believe in the genuineness of the customer. Else, the real estate agent would be robbed off.

  • advogado lisboa

    I think you have observed some very interesting details , thanks for the post.

pingbacks / trackbacks

Leave a Comment