When thinking about buying real estate, it is natural to be very excited and want to see properties as soon as possible. In that excitement, you may delay the important step of obtaining a home LOAN pre-approval. A pre-approval is a introductory review of your finances and credit history to identify your eligibility for a mortgage. It is not a promise of a mortgage, but a guess in lieu of a full mortgage application. Receiving a pre-approval is a good idea for several reasons. This article details advantages of mortgage pre-approvals before viewing Virginia real estate.
Understand Your Price Range
Loan requirements and mortgage rates can vary. A pre-approval provides a handle on the programs and alternatives available, what your closing expenses may be, and more importantly, what you can purchase. Without this information, you might waste valuable energy visiting homes that are not feasible. Identifying what you can afford also minimizes the heartbreak of wanting a home that you can not purchase.
Improving Your Leverage
Homes with highly sought after amenities or great prices tend to sell fast. A pre-approval gives you the option to make an offer on a hot listing. When you submit an offer, you almost always must enclose a pre-approval letter. This tells the owner that you are prepared and capable of completing the purchase. It is rare that an owner would consider an offer and move forward with a home buyer without any verification that the buyer can even get financing. When there are multiple offers, this is even more vital.
A pre-approval saves time during offer preparation and on the processing of a home loan. Most sellers request a pre-approval with offers. Failing to have one prepared will delay completing an offer and can lead you to lose out on a property. Pre-approvals entail reviewing earnings, assets, debts, etc. This may take some time depending on whether you have the documentation available. Mistakes in YOUR CREDIT REPORTS may cause additional delays. Beginning ahead of time will also save valuable time when processing your loan and accomplishing a fast closing.
Advantages Of Mortgage Pre-approvals Before Viewing Virginia Real Estate
The information in this article on advantages of mortgage pre-approvals before viewing Virginia real estate are for consideration as you start to think about a home purchase. The home buying process may be complicated and stressful already. Being proactive and prepared will reduce difficulties. For additional guidance, contact Amir Sadeghi at Keller Williams Realty by emailing email@example.com or calling 571-331-3070.