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Why Pre-Approval?

There are advantages to getting pre-approved for a loan before you begin your search for a new house.

Pre-approval removes some unwanted pressure.

Once you find a home that you want to purchase, and your offer is accepted and the forms have been signed, the clock is ticking for you to get a mortgage.  If you are pre-approved, getting a mortgage should run rather smoothly and quick.

However, if you are not pre-approved then you might run into some problems.  You will feel rushed and stressed to get the mortgage before the close.  Also, if your lender has a stack of loans to process you could seriously be "cutting it close".

Pre-approval makes you look like a serious buyer.

Suppose there are two buyers who make an offer on a house.  The first buyer is not pre-approved.  The second buyer is pre-approved and has a letter from their lender stating that they can afford the home.  The seller is probably going to pick the pre-approved buyer.  They look more motivated and creditable.  The pre-approved buyer is more likely in a better position to negotiate the price of the house also.

Pre-approval is a simple process:

  • Fill out an application and give it to your lender
  • The lender will obtain your credit report and qualify you based on income, debts, and credit score.
  • The lender will give you a letter stating how much you can afford to pay for a house.

It's fast, easy, and concrete evidence that you're motivated in the eyes of a seller!

If you would like to get pre-approved, Vermont Real Estate agent Geri Reilly recommends calling Nick Parent at Spruce Mortgage: (802) 863-5102 or email