Now may be the perfect time for your buyers to arrange their home financing. Understanding their mortgage options now can give them an advantage as they negotiate their home purchases. We can help them with either of these two convenient services:
- A preapproval letter from Wells Fargo Home Mortgage. This designates the buyer as a Priority Buyer® — a term that tells real estate agents and home sellers that the buyer has been preapproved for a specified mortgage amount based on a preliminary review of his or her credit information.
- A mortgage prequalification. This lets the buyer know roughly how much he or she may be able to borrow to buy a new home, based on basic financial data the buyer has provided.
Preapproval vs. Prequalification
A preapproval indicates that a lender has taken a detailed look into the buyer’s credit information and has issued a preliminary credit review, pending specific property and documentation. Because a preapproval requires a credit check and an actual mortgage application, it's more powerful than a prequalification letter, which generally only estimates what the buyer may be able to borrow, based on information he or she has provided.
What are the advantages of a PriorityBuyer preapproval?
- Helps you identify serious offers
- Helps buyers shop confidently because they know their buying ranges
- May help give buyers an edge over others who haven't been preapproved
- Lets buyers find out about and address possible qualification problems early in the homebuying process
- May allow for a faster closing, since some of the application process has already been completed