Sioux Falls Real Estate Blog

Getting a preapproval letter from the bank before you start to look for a home can eliminate the questions of wondering if you can afford a house. The purpose of a preapproval letter is to show you the amount of money a mortgage lender will lend you when purchasing a home. By having a preapproval letter, you can narrow in on homes that fit your budget instead of looking at everything on the market. It is possible to shorten a 30-day closing to 2 or 3 weeks, which is nice when a seller needs to move quickly. Another advantage is that sellers will find your offer more attractive compared to those who have not been preapproved. The worst thing you can do is to go out looking for a house, find the perfect one, and not be able to buy it because you can’t get the loan necessary to purchase the house.

To get preapproved, send your financial information to your mortgage lender. They will review your loan application and then, if you qualify, they will give you a preapproval letter indicating the mortgage amount, down payment, and interest rate.