The Importance of a Mortgage Pre-Approval Letter
A mortgage pre-approval letter has become necessary in order to purchase a home in today’s real estate market. Here in Gainesville, most sellers will not even consider an offer without a pre-approval letter from a qualified lender. As a result, many Gainesville realtors will only show homes after you obtain a pre-approval letter, to ensure that they are not wasting your time or theirs. If your realtor didn’t mention getting a pre-approval, they may be new to real estate. Ultimately, most realtors will not advise their sellers to sign a purchase agreement until they receive proof of funds (cash) or a pre-approval letter. So you see, you can’t get very far purchasing a home without a mortgage pre-approval from a respected lender here in Gainesville.
Structuring the Offer for Your Benefit
In addition to finding out how much you can purchase, it can be quite helpful to meet with one of our mortgage planners before negation, to develop an offer strategy. Our Gainesville market is quickly changing to a seller’s market. A “seller’s market” simply means that there are more buyers than sellers, which usually results in the seller having the advantage in the negotiation. Because many buyers have limited funds, especially 1st time buyers, they may need assistance with closings costs. Strategically planning your offer, so that the seller will be willing to help with these costs or lowering your rate, can result in a much better deal for you. Landmark Mortgage Planners have a great deal of experience with these types of strategies. Get pre-approved online or meet with one of our Mortgage Planners to insure you get the best possible scenario for your family.
Locally Owned and Operated
We’ve met many buyers who think they can get a “good deal” by going with their existing bank or an internet lender. Landmark Mortgage Planners is competitively priced with both rates and costs. We can often offer the same or better rates and terms as banks and online lenders. But, unlike your local bank, at Landmark Mortgage Planners we make income for our families in one way – closing mortgage loans. As a result, closing loans is our only priority. Too often, bank employees have many responsibilities not related to mortgage lending, and are almost always salaried employees. Because of this, bank employee loan officers have less mortgage experience. We have highly skilled mortgage professionals who know our industry like the back of their hand. They answer their phones, return calls, and don’t go home at 4:00 in the afternoon. In addition, Landmark Mortgage Planners is locally owned and operated. Our reputation in Gainesville means everything to everyone working at Landmark. Unlike online lenders, we can’t tell you one thing and deliver another, or hide if there are delays along the way. In addition, we are very knowledgeable about Florida law, local development and ordinances, and we know other real estate professionals (like title companies, surveyors, engineers, inspectors, insurance agents, escrow and closing agents) needed to get the job done right. Why trust one of your largest purchases to an individual with limited experience, or someone who you will never meet? Contact Landmark Mortgage Planners.
Other Benefits of a Mortgage Pre-Approval
A mortgage pre-approval also gives you the buyer some valuable information. Our Landmark Mortgage Planners will help you determine the following at your mortgage pre-approval appointment:
- Evaluate Credit. We will run a mortgage credit report, which is different from credit reports run for other purposes. We will review your credit for accuracy, identifying areas where you can improve your score. Even if you have spotless credit there are things you can do to keep your score at the highest it can be.
- Discuss Down Payment. In your mortgage pre-approval, we will talk about the money you have available for a down payment and closing costs, and acceptable sources for funds including gifts, bonuses, sale of real estate or personal property, and other sources. We will arm you with the information needed to properly document these sources to avoid problems in underwriting.
- Determine the Best Program. Based on your down payment and credit, we will discuss the different programs that may be available to you. We will let you know about any restrictions and documentation that these programs impose, so that we can discover any difficulties upfront and get a head start gathering items for the mortgage.
- Discuss Interest Rates. We will discuss interest rates, how they change, the difference between a fixed rate or an ARM, when you can lock your rate, how points affect your rate, and more at your mortgage pre-approval appointment.
- Determine the Payment and Loan Amount. We use lender allowed debt ratios to determine the payment amount for which you can be approved, considering your current gross income and all of your current debts. Then we also consider the payment that is comfortable for your budget. Together, we determine the mortgage pre-approval loan amount that you can be approved for and will be comfortable in your budget.
- Provide a List of Items Needed. You will leave your mortgage pre-approval appointment with a complete list of items we will need to submit your loan to the underwriter. Gathering these in advance can significantly reduce the time required to close your loan once you find a home.
- Mortgage Pre-Approval Letter. We will provide you with a mortgage pre-approval letter that you can use to prove to realtors, sellers and banks that you are qualified to buy.
Your mortgage pre-approval will allow you to shop for that dream home with confidence. When you find the right home, you won’t have any concern regarding whether you can afford it, or how long it will take, what kind of mortgage you should get, or if your loan will be approved. At Landmark Mortgage Planners we will answer all of these questions at your mortgage pre-approval appointment.
You can either set a mortgage pre-approval appointment or you can make application on line and one of our mortgage planners will contact you to discuss your application and email you the mortgage pre-approval letter.
“ I have positioned myself at Landmark Mortgage Planners because the team here shares the same vision as I do – to deliver the very best customer service and being leaders in our industry by building a strong reputation of providing prompt and reliable service. I believe we can do this at Landmark because we have a strong team and we also enjoy the flexibility of not being limited to just one set of mortgage origination guidelines.”
Melissa Gibson, Certified Mortgage Planner