If you’re a home buyer on the western slope of Colorado, you’re probably already familiar with the competitive nature of the local real estate market. Properties move quickly, and buyers need to be prepared to act fast to secure their dream home. One crucial step in the home buying process is obtaining a mortgage pre-approval letter. In this blog post, we’ll explore why getting pre-approved is so important and the difference between pre-qualification and pre-approval.

Why get pre-approved for a mortgage?

A pre-approval letter from a lender is a document that shows you have been pre-approved for a specific loan amount based on your financial situation, credit score, and other factors. Having a pre-approval letter in hand before you begin your home search can give you a significant advantage over other buyers. Here are a few reasons why:

  • It shows sellers you’re serious

When sellers receive an offer from a buyer with a pre-approval letter, they know the buyer has taken the time to get their finances in order and is serious about purchasing a home. This can make your offer more attractive and increase your chances of having it accepted over other, less-prepared buyers.

  • You can act quickly

In a competitive market like the western slope of Colorado, time is of the essence. Having a pre-approval letter means you can act quickly when you find the right property. You’ll be able to make an offer on the spot, without having to wait for the lender to process your application.

  • You’ll know your budget

A pre-approval letter gives you a clear understanding of how much you can afford to spend on a home. This can save you time and frustration by helping you focus on properties that fit within your budget.


Pre-qualification vs. Pre-approval: What’s the difference?


Many people use the terms “pre-qualification” and “pre-approval” interchangeably, but they actually refer to two different stages of the mortgage process.

Pre-qualification is an initial step where a lender takes a basic look at your finances and credit history to determine how much you might be able to borrow. This process is usually quick and can be done online or over the phone. However, pre-qualification is not a guarantee of approval, and it doesn’t take into account your credit report or other important financial details.

Pre-approval, on the other hand, is a more in-depth process where a lender examines your finances in detail, including your credit report, income, debt, and assets. The lender will then issue a pre-approval letter stating the maximum amount you can borrow, subject to the property meeting certain conditions. Pre-approval is a much stronger indication of your ability to secure a mortgage and can make your offer more attractive to sellers.


Trusted, Local Mortgage Lenders


If you’re ready to get pre-approved for a mortgage, it’s essential to work with a trusted lender who knows the local market. At Cowan Home Team, we have a network of local mortgage lenders who we can recommend to our clients. These lenders have a deep understanding of the western slope of Colorado market and can help you find the right loan for your unique financial situation. More importantly, we only recommend lenders we’ve worked with and who have proven they can provide top-notch service to our buyers.


In today’s competitive real estate market, it’s more important than ever to be prepared when searching for a home. Getting pre-approved for a mortgage can give you a significant advantage over other buyers and help you secure the property of your dreams. If you’re ready to take this step, reach out to the Cowan Home Team today to learn more about our trusted local mortgage lenders and start the pre-approval process.