When thinking about buying homes, it is normal to be anxious and want to see properties immediately. In that excitement, you might overlook the important step of obtaining a mortgage pre-approval. A pre-approval is a preliminary assessment of your finances and credit worthiness to determine whether you may be approved for a home loan. It is not a guarantee for a loan, but the best estimation prior to a full mortgage application. Having a pre-approval letter is a good idea for many reasons. This blog discusses reasons why home buyers should obtain pre-approval before seeing Washington properties.
Lending requirements and mortgage rates fluctuate regularly. A pre-approval provides a clear understanding of the loans and alternatives that you can use, what your up-front expenses will be, and most importantly, what you can view. Without this information, you can waste a lot of time looking at real estate that you do not qualify to buy. Identifying your price range also saves you the emotional distress of becoming attached to a listing that you can not afford.
The best listings go under agreement the fastest. A pre-approval provides you with the option to make an offer. When you submit an offer, you normally must include a pre-approval letter. This shows the seller that you are prepared and capable of moving forward. It is unlikely that a seller will consider an offer and take their property off the market without any indication that you can actually pay for the home. When there are multiple offers, a pre-approval will make a big difference.
A pre-approval saves time during the offer process and during loan processing as well. Most sellers will not look at an offer without a pre-approval. Failing to have one in-hand will lead to delays in submitting your offer and may cause you to miss out on a listing. Pre-approvals require reviewing earnings, personal assets, debts, etc. This may take a couple of days depending on whether you have the documentation in-hand. Errors in your credit file may result in more delays. Starting in advance will also save valuable time when processing your mortgage and achieving a quick closing.
The information in this article on reasons why home buyers should obtain pre-approval before seeing Washington properties are something to remember as you start to think about buying a home. The home buying process may be complicated enough. Being proactive and prepared will minimize difficulties. For additional information, contact Blaine Bickelhaupt at Blue Mountain Realtors by emailing firstname.lastname@example.org or calling (509) 382-2020.