If you are getting ready to buy a property, do not miss the critical first step of getting a mortgage pre-approval. A pre-approval is a preliminary look at your financial information and credit scores to gauge whether you may be approved for financing. It is not a guarantee for a loan, but a guess in lieu of a full mortgage application. Getting a pre-approval is essential for a variety of reasons. This blog discusses reasons why buyers should obtain pre-approvals prior to seeing Waltham MA real estate.
Understand Your Options
Lending requirements and mortgage rates fluctuate regularly. A pre-approval provides a clear understanding of the programs and alternatives available, what your costs will be, and more importantly, your maximum purchase price. Without this, you might waste a lot of energy viewing homes that are not within your price range. It is also best not to fall in love with a property that you can not purchase.
Increasing Purchase Power
The best listings also sell the fastest. A pre-approval gives you the option to act on a hot listing. When you write an offer, you normally must include a pre-approval letter. This shows the other party that you are prepared and capable of making the purchase. It is rare that a seller will accept an offer and take their property off the market without any documentation that the buyer can actually get financing. When there is more than one offer, a pre-approval is even more critical.
A pre-approval saves time during the offer process and on the processing of a home loan. Most sellers will not look at an offer without a pre-approval. Not having one prepared may delay submitting an offer and can result in a lost opportunity. Pre-approvals entail analyzing income, personal assets, debts, etc. This could take several days depending on whether you have the paperwork available. Errors in your credit file may cause additional delays. Starting early will also save some time when processing your loan and completing a quick closing.
Reasons Why Buyers Should Obtain Pre-approvals Prior To Seeing Waltham MA Real Estate
The information in this article on reasons why buyers should obtain pre-approvals prior to seeing Waltham MA real estate are for consideration if you are a potential home buyer. The real estate experience can be complicated enough. Getting your ducks in a row will reduce problems. For additional information, contact Bradford Pratt at REMAX on the Charles by emailing email@example.com or calling 781-316-5760.