Getting Mortgage Preapproval Letter.

Preapproval positions a borrower to purchase a home or refinance a mortgage from a very
strong position. While it does not guarantee final approval, all that will be necessary is to satisfy
what are mostly routine and standard conditions afterwards.

When you're purchasing a home -- If you choose to work with a Realtor, you should be aware that very few
Realtors will work with a buyer who has not been preapproved. An experienced Realtor doesn't want to
waste their time and effort showing properties to someone who's not going to get financed. Many FSBO
(For Sale By Owner) sellers will feel the same way. At MortgageMatch, we provide preapproved borrowers
with a preapproval letter as proof the borrower has gone through a strong preapproval process.

This is all any Realtor or FSBO seller needs to have. What interest rate you may have been offered, or
what exact lender is making the loan isn't information anyone but you needs to know. Be wary of Realtors
who press you for this information. Some Realtors may try to persuade you to use a lending service
they're connected to... (See the "10 biggest mistakes home buyers make.") or one which may even pay
them a commission for a referral. While there's nothing wrong with shopping around. Keep in mind you've
been preapproved. Attempting to go through preapproval again could cost you your loan.

Now, as has been stated, a preapproval does not guarantee you final approval. So, it's very important that
you have financing contingencies in your purchase contract... regardless of whether you're working with

a Realtor or not. These contingencies will get your earnest or hand money deposit back... just in case you
don't get your loan. You might wonder what could go wrong after you've been preapproved. Well, some of
these things have little to do with you personally, and have more to do with the property you're buying. For
instance, there may be a problem with the property's Title, or you may not get a high enough appraisal.

Things like these examples will keep most lenders from making the loan. So, bottomline, you want to be
protected by contingencies based on your getting financed with terms that are satisfactory to you.

It's been noted in a previous email that some of the steps in the mortgage process will overlap. After
preapproval, your Loan Consultant will begin to work on meeting some of the conditions the lender has
established. This work will often start and continue while you're looking for your purchase. So, even
though you may not have a purchase contract in hand, your Loan Consultant and Processor will be
moving your loan forward.

When you're refinancing a mortgage -- After preapproval, your Loan Consultant and Processor will start
working on satisfying some of the conditions the lender has placed on final approval. Probably the most
important step after preapproval in a refinance is securing an adequate appraisal. And, securing an
appraisal can often be the most lengthy step in a refinance. But, because refinancing is typically not as
complicated as a purchase, refinancing a mortgage is usually completed more quickly than a purchase.

The appraisal is of considerable importance in both a purchase and refinance. In the next step, some insight
into what role the appraisal plays in a new mortgage is provided.