If you are a first time homebuyer I am sure you want your first home buying experience to be as painless and easy as possible. There are some things in your control that can help make the process run smoothly, such as applying for a mortgage before making an offer on your home, and being able to tell the seller that you are preapproved. Most sellers will favor offers from potential buyers who have preapproved home finance plans, as opposed to people who cannot guarantee that they have a way to pay for the home.

There are two kinds of preapprovals you can receive. While both may be deemed as preapprovals, one is actually termed prequalification. If the lender has done an extensive credit check on you and has committed to lending you a certain amount of money for your loan, you can be sure that you are preapproved. However, if you receive notice that you are prequalified, or told estimates what you can afford based only on information you have submitted to the lender, this may mean that you are not completely preapproved and that you need to wait for a credit check and actual preapproval. Either way, it is better to be prequalified than to not have applied for a loan at all.

Some of the advantages of being preapproved are obvious, while others are not so cut and dry. You are probably aware that being preapproved makes shopping for a home much easier, since you already have a pretty accurate idea of what you can afford. Again, the seller will also be pleased to hear you have been preapproved and will be more likely to accept your offer knowing this information. In addition, applying for a loan before searching for your home will let you know beforehand any credit problems you may have to work out before you start the home buying process. If you make an offer on a home and then find out you are unable to qualify for a loan, you will not only be embarrassed but very disappointed that you are unable to purchase your desired home.

There are many benefits of preapproval for all home buyers, but first time home buyers and self-employed or commissioned employees may benefit the most. First time home buyers may not be trusted as well as previous home owners. Since there is no history or record on which sellers can form their decision, they may require you to be preapproved before accepting your offer. With self-employed buyers or those with fluctuating incomes, sellers may also be weary of accepting your offer with the worry that you may not be able to come through with payments on a regular basis.

Because of all of the benefits and advantages of preapproval, you probably want to get started this very minute. All you need to do is contact a Wells Fargo near you and submit your financial information. Your information will then be reviewed, evaluated and processed, giving you a response in a short time.

If you are preapproved you should receive a letter of confirmation with the amount approved, down payment and interest rate. Sometimes you will need to give more information about the property and appraisal, but once all of the information is collected Wells Fargo will work hard to get you preapproved and ready to go purchase your home.