Finance Your Dream Home in El Paso TX and Fort Bliss Area Helping Sellers and Buyers - El Paso Realtors®

Sponsoring Lender: Cardinal Financial

Our team of local financing experts are ready to guide you through the home buying process. They are committed to fast, professional, courteous, and personal service to help you understand and feel at ease throughout the home buying process. These trained and certified loan originators specialize in financing homes in the El Paso’s real estate market. They are prepared to find the right loan program with competitive rates and low down payments for you. These lenders are experts on VA loans, First Time Home Buyers and $0 Down-payment Programs.

Why Get Pre-Qualified?

1. Pre-qualification acts as a dry run of the loan application process. The mortgage lender will use details you provide about your credit, income, assets and debts to arrive at an estimate of how much mortgage you can afford. The whole process may take only minutes or a few hours at most and is free.
2. While a “pre-qual” is non-binding to the lender (because the information you provide has not been verified), it does serve as a good indication to potential sellers of your general creditworthiness.
3. These days most sellers will NOT accept an offer without at least a pre-approval letter, so if you are serious about buying this is the first step towards getting you into your new home.

Getting preapproved for a mortgage loan, as opposed to just getting prequalified, offers several significant advantages for home buyers.

Here’s why preapproval is generally recommended

1. Stronger Negotiation Power: Preapproval involves a more thorough assessment of your financial situation, including verifying your income, credit history, and other financial documents. This process gives you a more accurate estimate of the loan amount you’re eligible for, which in turn gives you stronger negotiation power when making an offer on a home. Sellers are more likely to take your offer seriously when they see that you have already been approved for a mortgage.
2. Accurate Budgeting: Preapproval provides a more precise understanding of the price range you can afford. This helps you focus your home search on properties that realistically fit your budget, saving you time, and preventing disappointment later in the process.
3. Accurate Budgeting: Preapproval provides a more precise understanding of the price range you can afford. This helps you focus your home search on properties that realistically fit your budget, saving you time, and preventing disappointment later in the process.
4. Faster Closing Process: Since much of the necessary paperwork and verification has already been completed during the preapproval process, the actual mortgage approval and closing process can be expedited. This can be particularly important in competitive housing markets where properties may receive multiple offers.
5. Identifying Issues Early: Preapproval involves a thorough examination of your financial history, which may uncover potential issues that could affect your ability to secure a mortgage. Identifying and addressing these issues early can save you time and stress during the home buying process.
6. Confidence in Bidding: When you’re preapproved, you can confidently make offers on homes, knowing that you have already been approved for a certain loan amount. This confidence can be especially valuable in situations where there’s strong competition among buyers.
7. Smoother Process: With preapproval, much of the paperwork and communication with lenders has already taken place. This can lead to a smoother and less stressful overall process when you find the right home.
8. Avoid Surprises: Prequalification provides only a rough estimate of what you might qualify for, while preapproval is a more concrete commitment from a lender. This reduces the likelihood of last-minute surprises or changes that could jeopardize your ability to secure financing.
9. Credibility: A preapproval letter demonstrates to sellers and real estate agents that you’re a serious buyer who has taken the necessary steps to secure financing. This can make you a more attractive candidate when competing with other potential buyers.

In essence, while both prequalification and preapproval give you an idea of your potential purchasing power, preapproval offers a higher level of certainty and credibility, making it a more advantageous step for serious home buyers. It’s important to consult with a mortgage professional to understand the specific requirements and benefits of preapproval based on your individual financial situation.