Your real estate and mortgage professional may tell you that it's critical to apply for a loan before shopping for a home. Guess what, they are right! Applying for a loan before shopping is an essential first step, but did you know that it's far better to be pre-approved for a loan than to be pre-qualified? When you're pre-approved, it means you have a commitment in writing from a lender to lend you a specific amount to buy a home under certain conditions (e.g., length of the loan and interest rate). A pre-qualification is only an estimate of how much you may be able to borrow.

Knowledge is power. Getting pre-approved will fill you in on how much you can borrow and afford, and will show that you're capable of closing the deal with the seller.

When getting pre-approved, be prepared to equip your USA Financial Solutions, LLC. mortgage professional with your financial footprint. Documentation including your W2 statements, bank statements from the past few months, federal tax returns from the past few years, proof of investment income and pay stubs and proof of other income will be required to process your pre-approval and will help determine the amount you can loan and afford on a monthly basis.

Once you've been pre-approved you will have the ability to:

#1 - Save Time Looking at the Right Homes
Why waste a weekend at open houses for homes you can't afford? One large advantage to getting pre-approved for a loan before you shop is to save your, your real estate agent's and the seller's valuable time.

A pre-approval will narrow down your options and provide your agent with the information they need to only present you with the properties that are within your financial reach. Instead of the price point being your deciding factor, you can focus in on some of the more important characteristics of the house and determine whether or not it fits your lifestyle needs.

#2 - Have Greater Bargaining Power
The good news is that there are plenty of great deals on the market. The bad news; expect to bid and negotiate with the best of them. Once you've been pre-approved, sellers will consider you to be a serious and valuable buyer. When it's time to make an offer, you'll be in a better position than other buyers to negotiate because you can show that you're a prepared and financially capable candidate.

This said, having a pre-approval letter in hand will not only improve your house hunting experience and bargaining power, it will also speed up the closing process.

#3 - Experience a Faster Closing
Pre-approved buyers have already jumped through many of the mortgage processing hoops, thus speeding up the entire procedure when the time comes to close on a property. Pre-approval can potentially shorten a 30 day closing process to just a few weeks. This could give you, the pre-approved buyer, a competitive edge when the seller is deciding which offer to accept, especially if they're in a hurry to move and need to quickly close.

Keep in mind your pre-approval has an expiration date, typically 90 days or so and may vary by lender. You can always ask your USA Financial Solutions, LLC. mortgage professional to re-validate you if you need more than a few months. Contact USA Financial Solutions, LLC. by calling 866.33.USAFS (87237) to learn more, or to get pre-approved for your next home purchase.

Keeping You Informed
USA Financial Solutions, LLC. is dedicated to keeping you informed of the latest market trends and mortgage options. Visit us online at http://usafinancialsolutions.com, or call today at 866.33.USAFS (87237), to obtain custom loan options designed to fit your needs and help you obtain your home ownership goals.