OAK RIDGE TENNESSEE - OAK RIDGE Homes and Real Estate For Sale

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Powerful Tools, Powerful Results

A purchase preapproval is a lender's analysis of you as a borrower without specific property information. In other words, your loan information is submitted to a lender for full underwriting and includes all borrower details, such as employment information, asset information, and credit history. The lender then approves you as a borrower, subject to a maximum loan amount, down payment, and interest rate. Getting preapproved for a loan is critical in today's real estate environment. Many Sellers and their Realtors do not want to accept offers from buyers unless they have been preapproved by a lender. While this seems like a ``catch 22'', that is, how can I get my loan approved if I haven't even found a home? This tool is very useful. By going through the loan process prior to being in contract on a home, you can eliminate all of the obstacles to borrowing without jeopardizing an actual purchase transaction. Once your loan is approved, your real loan closing will be quick and subject only to a satisfactory appraisal and title report on the home. To begin the preapproval process you need to make some assumptions for your purchase price, loan amount, and loan program. Any of these assumptions can change once you've found your home, but it helps to do the following:  Complete your application for the maximum loan amount and purchase price that you're interested in. You can always reduce these later.  Get your loan approved at an interest rate that is higher than what you expect to take. Again, the loan program that you decide upon can differ from what you are initially approved at. The preapproval of your loan will ensure that your real purchase will go smoothly once you have located the perfect home. Jason Melton, REALTOR Linda Brown Realty, GMAC