There are advantages to getting pre-approved for a loan before you begin your search for a new house.
Pre-approval removes some unwanted pressure. Once you find a home that you want to purchase, and your offer is accepted and the forms have been signed, the clock is ticking for you to get a mortgage. If you are pre-approved, getting a mortgage should run rather smoothly and quickly. However, if you are not pre-approved then you might run into some problems. You will feel rushed and stressed to get the mortgage before the close. Also, if your lender has a stack of loans to process you could seriously be “cutting it close”.
Pre-approval makes you look like a serious buyer: Suppose there are two buyers who make an offer on a house. The first buyer is not pre-approved. The second buyer is pre-approved and has a letter from their lender stating that they can afford the home. The seller is probably going to pick the pre-approved buyer. They look more motivated and creditable. The pre-approved buyer is more likely in a better position to negotiate the price of the house also.
Pre-approval is a simple process:
Fill out an application and give it to your lender
The lender will obtain your credit report and qualify you based on income, debts, and credit score.
The lender will give you a letter stating how much you can afford to pay for a house.
Questions? Contact Marble Falls Realty Group today!