Where to Turn - Why to Apply for - a Pre-Approved Florida Home Loan

Before you go through with purchasing a home, many realtors will suggest the pre-approval process. What does this mean? Should you ask multiple lenders for a pre-approved Florida home loan? We have the answers …

A mortgage pre-approval is a check of your finances, debt your credit. Pre-approval is something less than approval, mainly, because the property value is preliminary and won’t be definitively established until you have a purchase contract. Furthermore, a pre-approval may not specify a Florida mortgage loan price.

Pre-approved Florida home loan details

A pre-approval is a statement of opinion by a lender that a prospective buyer has the income, assets and credit to carry the mortgage required to purchase a house of some assumed value. Because the borrower’s mortgage-carrying capacity depends on a Florida home loan rate that is not yet known, and since the price of the house is preliminary, a pre-approval has a lot of slack.

The purpose of pre-approved Florida home loans is to convince a seller that a prospective buyer has the means to make the purchase and should therefore be taken seriously.

Why do lenders offer these pre-qualifications? Their hope is that the purchaser will view the pre-approval as the first step in obtaining a Florida home loan. It’s a way of generating a promising lead.

But it’s no guarantee and no finalized deal - selecting a lender for no other reason than that the lender had issued you a pre-approval would be a mistake.

On the other hand, there is no reason to exclude that Florida home loan lender from your search for a mortgage. If your experience with the pre-approval was favorable, and if you are having difficulty making a decision among loan providers, you might want to give the lender providing the pre-approval an edge over the others seeking your Florida home mortgage loan business.