When contemplating the purchase of real estate, it is natural to be very excited and want to start viewing properties immediately. In that excitement, you may hold off on the important step of requesting a mortgage pre-approval. A pre-approval is a introductory look at your finances and credit history to identify whether you are likely to be approved for a mortgage. It is not a promise of a loan, but a fair estimation in lieu of a full mortgage application. Having a pre-approval letter in-hand is essential for different reasons. This blog details reasons why buyers should obtain pre-approvals before seeing Waltham MA real estate.
Understand Your Price Range
Lending options and interest rates can vary. A pre-approval provides a good understanding of the loans and options available, what your expenses will be, and more importantly, what you can afford. Without this information, you may waste valuable time looking at real estate that do not fit your financing or that are merely out of your range. Knowing your price range also minimizes the emotional distress of viewing and falling in love with a property that you cannot have. This is one of the most important reasons why buyers should obtain pre-approvals before seeing Waltham MA real estate.
Waltham MA homes with the best amenities or the best price usually sell fast. A pre-approval gives you the power to make an offer on a hot property. When you write an offer, you almost always must enclose a pre-approval letter. This demonstrates to the seller that you are ready, willing, and able to purchase. It is rare that a seller would accept an offer and waste their time without any documentation that a buyer can even pay for the home. In multiple offer situations, a pre-approval is even more essential.
A pre-approval saves time when making an offer and during loan processing. Most sellers may not consider an offer without a pre-approval. Not having one ready may lead to delays in submitting your offer and may result in a missed opportunity. Pre-approvals consist of reviewing documentation of income, assets, debts, etc. This may take some time depending on whether you have the paperwork readily available. Errors in your credit reports can result in additional delays. Starting and addressing this step early on will also save valuable time in processing your loan and accomplishing a quick closing.
Reasons Why Buyers Should Obtain Pre-approvals Before Seeing Waltham MA Real Estate
The details above on reasons why buyers should obtain pre-approvals before seeing Waltham MA real estate is something to remember when thinking of buying a property. The home buying process can be complicated enough. Being diligent and prepared can minimize the stress and issues experienced along the way.