Home Purchasers gain Jumbo Mortgage Pre-Approval

When it comes to housing, many people will continuously look at homes that are for sale without fully knowing if they can actually purchase them. In these cases, real estate agents and home sellers will not give them too much consideration because serious home buyers will obtain a jumbo mortgage pre-approval prior to shopping for a home. While a pre-qualification is a start, a pre-approval is considered a better option. A jumbo mortgage pre-approval is a written conditional commitment that is obtained from a mortgage lender. This letter or document states that the individual is approved for mortgage financing up to a certain amount of money. In order to receive a jumbo mortgage pre-approval, a detailed mortgage application must be submitted to the lender along with documentation for employment, income and assets. Similar to a regular application, this information will be verified, a credit report will be pulled and the loan file will go through underwriting. Upon approval that is based on actual documentation and verifications, the applicant receives a conditional commitment showing how much house and funds they are specifically approved for. By obtaining a jumbo mortgage pre-approval, the home buyer is providing evidence to home sellers and real estate agents that they are a serious and committed buyer. This gives them a better opportunity to negotiate in order to receive the price and deal that they are interested in. Because of the importance attached to a jumbo mortgage pre-approval, many real estate agents will not deal with home buyers who have not taken the steps to receive one. Since serious home buyers do, in fact, receive a jumbo mortgage pre-approval upfront, a faster real estate transaction is possible which creates a much more satisfactory home buying and financing experience. FreeRateUpdate.com surveys more than two dozen wholesale and direct lenders’ rate sheets to determine the most accurate mortgage rates available to well qualified consumers at a standard 0.7 to 1% point origination fee.