Does Getting Preapproved For A Home Loan Matter?

But despite this stiff competition, it's still a great time to buy! Here are the top advantages of getting preapproved for a mortgage before getting serious about shopping for a home.
May 19, 2021

If you're looking into real estate and home shopping recently, you've probably realized that the availability of houses for sale is limited, and the competition is fierce. Of course, this varies by neighborhood, but on average, we've found that there's only about 3.5 months' worth of new real estate available versus the usual 6 months' worth.

But despite this stiff competition, it's still a great time to buy! Here are the top advantages of getting preapproved for a mortgage before getting serious about shopping for a home. 

Advantages Of Getting A Mortgage Preapproval

Get A Showing Faster

There are some instances where real estate agents are declining to show homes to potential buyers unless they have a preapproval letter upfront. Getting this done before starting the house hunt ensures you're able to view and make an offer on any house that catches your eye.

Confidently Put In An Offer

The process of getting preapproved helps to clarify how much you can afford to pay in monthly mortgage payments. That way, you have an affordability budget in mind and a good idea of the mortgage payments.

Be Seen As A Low-Risk Buyer

Getting a mortgage preapproval also gives the seller confidence! Since preapproval means that an underwriting team has already verified your buying power, the seller can feel assured in accepting it. Some sellers may even view a preapproval-backed offer as solid as a cash one!

Even More Advantages Of Getting Preapproved With Us

The mortgage preapproval process becomes even more attractive when you utilize our convenient online mortgage preapproval process. From the comfort of your home, we can securely pull your credit to verify your income and assets. With just a few clicks, you can submit your documentation for items like pay stubs, tax returns, and W-2s and even virtually connect to your financial institution to verify assets. And, of course, a real-life mortgage professional is available to guide and advise you every step of the way. 

Are you serious about buying a home within the next 3 months?

If you are, then start your preapproval process today! It only takes minutes to complete the secure online application, and you can even save it to finish it at a later time. Have more questions? We've got answers! Contact us today for all your home loan and refinancing needs.  

 

✅ Benefits of Contract Loan Processing for VA Loans

  1. Specialized VA Knowledge

    • VA loans have unique requirements (COE, residual income, funding fee calculations, appraisal requirements).

    • A contract processor experienced in VA loans can spot potential issues early and streamline the process.

  2. Cost Savings for Lenders

    • No need to hire full-time staff; processors are paid per file.

    • Helps smaller brokerages or lenders manage fluctuating loan volumes without carrying extra payroll.

  3. Faster Turn Times

    • Contract processors often work remotely and are paid per closed file, so they’re incentivized to move loans quickly.

    • They can push COE requests, follow up on VA appraisals, and ensure VA-specific forms (26-1880, 26-8923) are completed on time.

  4. Compliance & Accuracy

    • VA has strict guidelines (e.g., allowable fees, seller concessions, and veteran protections).

    • A skilled processor reduces risk of compliance errors that could lead to loan buybacks or funding delays.

  5. Scalability

    • During high volume seasons (e.g., rate drops, PCS military moves), lenders can bring on extra processors quickly without long-term HR commitments.

  6. Reduced Loan Officer Burden

    • Lets LOs focus on originating, networking, and serving clients while the processor handles gathering DD-214s, income docs, pest inspection reports (if required), and underwriting conditions.

  7. Improved Borrower Experience

    • Veterans and active-duty borrowers often value clear communication and speed.

    • A processor who knows the VA process can anticipate documentation needs and prevent last-minute surprises.


👉 In short: Contract processors help lenders stay lean, compliant, and efficient, while ensuring veterans have a smoother experience.