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Advantages of Pre-approvals

Wednesday, September 26, 2018   /   by Marion Franke

Advantages of Pre-approvals

Benefits Of Loan Pre-approvals Prior To Viewing Homes In Montgomery County Texas

If you are getting ready to purchase real estate, do not forget the critical first step of requesting a mortgage pre-approval. A pre-approval involves evaluating your financial information and credit history to gauge your ability to obtain a loan. It is not a guarantee for a loan, but the best estimation in lieu of a full application. Obtaining a pre-approval letter is important for a variety of reasons. This blog discusses benefits of loan pre-approvals prior to viewing homes in Montgomery County Texas.

Understand Your Price Range

Lending options and interest rates will vary. A pre-approval provides an understanding of the programs and options currently available, what your closing costs may be, and most importantly, your price limit. Without this information, you can waste valuable time and energy evaluating properties that you can not afford. Understanding what you can afford also prevents the heartache of becoming attached to a property that you can not have.

Increasing Buying Power

The best homes also sell the fastest. A pre-approval provides you with the power to act on a hot property. When you prepare an offer, you usually must include a pre-approval letter. This shows the seller that you are ready and able to buy. It is unusual that an owner would accept an offer and move forward with a home buyer without any evidence that a person can actually pay for the property. When there are multiple offers, this will make a significant difference.

Time Savings

A pre-approval saves time when submitting an offer and during loan processing. Most sellers may not consider an offer unless there is a pre-approval. Failing to have one ready will delay submitting your offer and can result in a lost opportunity. Pre-approvals involve reviewing income, assets, recurring debt, etc. This can take some time based on whether you have the paperwork in-hand. Mistakes in your credit file can cause more delays. Beginning in advance will also save significant time in processing your mortgage and achieving a quick closing.

Benefits Of Loan Pre-approvals Prior To Viewing Homes In Montgomery County Texas

The information above on benefits of loan pre-approvals prior to viewing Montgomery County homes are something to remember as you begin to think about buying a property. The home buying experience can be complicated enough. Getting your ducks in a row will reduce difficulties. For more guidance, contact The Franke Team by emailing Info@ConroeRealEstate.com or calling (936) 647-4400.