"Door County Real Estate" by: Kevin Nordahl, REALTOR®

Home Loan Preapproval

Of the many deal-wrecking precautions, preapproval of a home loan is a simple and effective tool for any prospective home buyer to acquire. Getting preapproved for a mortgage will accomplish several valuable and time-saving steps to the home buying process.

First, by meeting with a bank prior to searching for a home, a buyer establishes a base for a relationship that may last for a very long time. Having a good rapport with the bank that will carry a thirty-year mortgage in your name is usually a good starting point for many.

Next, having a preset amount established with a lending institution gives a buyer a firm starting point with which to begin their home search and negotiate price. Preapproval creates a clear understanding of how much a buyer can safely borrow.

By doing this homework ahead of time there is no issue of having to abide by a thirty-day contractual timeline that most purchase contracts have. The preapproval process also hurdles over personal credit rating issues and kick-starts a milieu of financial paperwork that will be required down the road.

Perhaps the most important reason to get preapproved is that, in the minds of most sellers, coming up with that preapproval letter with the offer to purchase establishes you as a serious buyer, one who will move forward in the transaction without delay. In some cases that may be the force that swings the deal in your favor.

Most lending institutions are happy to establish a preapproval rating with a buyer in the hope of transacting future business and gaining the same peace of mind buyers are looking for.

Kevin Nordahl is a life-long resident of Door County, a REALTORŪ and a member of the Door County MLS. He is a Past President of the Door County Board of REALTORS® and a Senior Sales Consultant at Coldwell Banker Door County Horizons in Fish Creek. He may be reached online at knordahl@doorcountyrealestate.com or by phone at (920) 493-4004.

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