Compared to a year ago, the number of single-family homes for sale dropped 7.1 percent in June. As you might guess, fewer houses available means more competition for buyers, so it’s crucial to set yourself apart. How, you ask? For starters, carefully consider this question: how prepared do I want to be when making an offer? To help you decide, we rounded up the three levels of mortgage readiness, what they mean, and why you might want them.
After taking a basic look at your income, long-term debts, and down payment amount, your lender can help you understand what you can afford. You can be prequalified over the phone with no paperwork.
This is a lender’s indication that they will lend you money for a home. To be pre-approved, you must turn in all the financial documents you would for a loan application. Once pre-approved, you will receive a pre-approval letter, which shows sellers you’re serious about buying.
The highest level of mortgage readiness, Apex Approved means that all of the processing and underwriting work for your loan is completed upfront. Apex Approved puts you in a position to close on your home in as little as 15 days after receiving your purchase contract, making your offer very attractive to sellers, particularly in competitive bidding situations. Learn more about Apex Approved here.
That depends. If you’re only dipping your toes in the proverbial homebuying water, a prequalification could be sufficient. On the other hand, if you’re feeling ready to make an offer (and you’re not too worried about competition), a pre-approval will put in a good position. Finally, if your main goal is getting into your new home as fast as possible, and if you want to put forward your strongest offer, Apex Approved is the way to go.
Ready to get started with your homebuying journey? Let’s have a discovery session to see what your perfect mortgage looks like.
*Apex Approved is not available with all loan programs.
Topics: Buying a Home, mortgage pre-approval options, levels of pre-approval, prequalification or pre-approval?, type of pre-approval, upfront underwriting, TBD underwriting, prequalified vs preapproved