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What is Pre-Approval?
Pre-approval means you have met with a loan officer, your credit files have been reviewed and the loan officer believes you can readily qualify for a given loan amount with one or more specific mortgage programs.

Benefits of Pre-Approval
Summit Realty NorthShore agents routinely suggest that consumers start the mortgage process well before bidding on a home. By meeting with lenders, either online or face to face, and looking at loan options, you will find which programs best meet your needs and how much you can afford.

Although not a final loan commitment, a pre-approval letter, which shows your borrowing power, can be shown to listing brokers when making an offer on a home. It demonstrates your financial strength and shows that you have the ability to go through with a purchase. You can visit as many lenders as you like and get several pre-approvals, but keep in mind that each one carries with it a new credit check, which will show up on future credit reports.

Summit Realty NorthShore agents also recommend pre-approvals for another reason: Purchase forms often require buyers to apply for financing within a given time period, in many cases, seven to 10 days. By meeting with loan officers in advance and identifying mortgage programs, it won‘t be necessary to quickly find a lender, check credit, and rush into a financing decision that may not be the best option.

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