GET SMART- GET PREAPPROVED

As a home buyer, the smartest thing you can do is to get preapproved for the financing of your new home. On a preapproved loan, the lender has fully documented your credit rating, your ability to borrow money, and has set a maximum borrowing ability based on your income, credit and down payment. You can benefit in several ways from having your loan preapproved.

When you get preapproved, you eliminate any surprises about your ability to borrow by providing the lender with the information up front that is required for you to purchase a home. Plus, you are negotiating with the seller from a much stronger position. When there are multiple buyers bidding on a home, the seller will most likely accept the offer from the preapproved buyer. One of the seller's biggest concerns is that a buyer will not qualify for the loan to buy their home, therefore creating a multitude of problems for the seller.

So, before buying a home, get preapproved. This will allow you to close escrow and move into your new home even sooner.

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