House hunting is the fun part, but you won't get far if you don’t know your estimated price range. That’s where *pre-approval comes in.

With a *pre-approval, you’ll:

• Know how much you can afford to buy. You’ll get your estimated home loan budget—i.e., the amount you can afford to spend on a house—based on your debt, income, and credit.
• Get your estimated mortgage payment. Though online calculators are handy, a *pre-approval tells you exactly what your estimated monthly principal, interest, taxes, and insurance (PITI) will be.
• Have a better idea of your total investment. Once *pre-approved, you’ll find out the approximate costs of your loan and how much you’ll need for a down payment.
• Identify which loan meets your needs. You and your Loan Officer can review Academy’s wide variety of loan programs, including low and no down payment options.
• Gain insight into your credit/debt history. Your Loan Officer can also let you know which credit score range to aim for if you’d like to make your monthly mortgage payment cheaper.
• Get your financial “docs” in a row. After *pre-approval, you’ll find out which additional financial documents need to be submitted, helping to speed up your final loan approval.
• See your buying power increase. Early *pre-approval helps you look serious in the eyes of a seller, making your offer that much more attractive. 

During the buying frenzy of the pandemic, it became customary for most homebuyers to have a *pre-approval letter in hand before even thinking about putting an offer on a house. That’s because presenting a *pre-approved offer makes such a difference.

Though the market is no longer red-hot, early *pre-approval still has advantages. While most buyers don’t have the funds to make a cash offer, a *pre-approved offer may come in a close second. This is especially true when using Academy's *Pre-Approval+. *Pre-Approval+ takes you a step beyond a standard *pre-approval so you can gain assurance and stand out from the crowd. 

How to buy a house the smart way: Try Academy’s *Pre-Approval+.

Early *pre-approval is something your real estate agent will also appreciate. Another trend noted in the past few years is agents who prefer booking showings with *pre-approved buyers. For both buyers and agents, early *pre-approval helps prevent time waste, providing proof you’re able to purchase.

Since *pre-approval tells you how much house you can afford—in a specific dollar amount—your Realtor will be able to use this information to hone in on prime listings tailored to your needs as they become available. Housing inventory remains limited. These days, knowing your budget is no longer optional; it’s necessary.

Today’s homebuyers have more negotiating power than they did in years past, but a *Pre-Approval+ letter is still a strong negotiating tool to have in your back pocket. Along with giving you a leg-up, early *pre-approval will help get your loan process moving, minimizing delays and maximizing the odds that your mortgage is ready to close once your offer is accepted.