When thinking about purchasing properties, it is understandable to be very excited and want to visit properties as soon as possible. In that excitement, you may overlook the vital step of requesting a home loan pre-approval. A pre-approval is a basic look at your financial information and credit history to identify whether you are likely to be approved for a loan. It is not a guarantee for a mortgage, but the best estimation in lieu of a complete application. Getting a pre-approval letter is essential for a variety of reasons. This article provides reasons why buyers should get pre-approvals before visiting NH properties.
Know Your Price Range
Financing requirements and mortgage rates will vary. A pre-approval provides clarity on the loans and alternatives that you can use, what your closing expenses may be, and most importantly, what you can view. Without this, you will waste valuable time and energy looking at properties that do not fit your financing. It is also a good idea not to fall in love with a home that you can not afford.
Strengthening Your Position
Homes with desirable amenities or great prices always sell quickly. A pre-approval provides you with the ability to act on that perfect home. When you write a bid, you typically must enclose a pre-approval letter. This shows the other party that you are prepared and able to buy. It is unlikely that an owner would consider an offer and take their property off the market without any verification that the person can actually get financing. When there is more than one offer, a pre-approval will make a significant difference.
Impact on Time
A pre-approval saves time during the offer process and when your mortgage is processed. Most home sellers will not consider an offer without a pre-approval. Not having one ready may lead to delays in completing your offer and may lead you to miss out on a home. Pre-approvals involve analyzing income, personal assets, debts, etc. This can take a couple of days depending on whether you have the documentation readily available. Errors in your credit reports can result in additional delays. Starting early may also save significant time when processing your loan and accomplishing a quick closing.
Reasons Why Buyers Should Get Pre-approvals Before Visiting NH Properties
The information in this blog on reasons why buyers should get pre-approvals before visiting NH properties are for consideration as you start to think about purchasing a property. The real estate experience may be complicated enough. Getting your ducks in a row can minimize problems. For additional guidance, contact Customer Service at Accurate Title by emailing email@example.com or calling 800-639-4405.