Before you take your first home tour, before you even start looking online, you should take one crucial step: get pre-approved for a mortgage. Let’s look at why this move should come before all others.

Getting Your Numbers Straight

On the personal side, there are key numbers you need to be aware of, including your credit score, debt- to-income (DTI) ratio, gross monthly income, cash, and assets. With these numbers laid out during the pre-approval process, your financial position will be clear.

On the homebuying side, you want to know exactly what you can afford. Mortgage pre-approval tells you how much you can borrow and thus how much you can spend on a home. Having that clarity is crucial before you look at listings.

Mortgage Pre-Approval Delivers Speed

When you find your dream home, you'll want to act. You don’t want to get bogged down gathering financial documents, submitting paperwork, and waiting for your pre-approval to come through. While pre-approval typically takes 1 to 3 business days, delays caused by incomplete paperwork and complex financial situations are common.

Why risk losing the home you love to a bidder who is ready to make an offer?

With mortgage pre-approval, you’re ready to make an offer the moment you find the right home. There’s a good chance you'll need that edge. On average, homes in Dallas get two offers, and you don’t want to be the one who makes the offer days after another bidder.

How Much Time Do You Have?

It’s important to know that mortgage pre-approval is temporary. Mortgage pre-approval letters are typically valid for 30 to 90 days. After they expire, you can usually get an update or an extension for another 30 to 90 days, often through a streamlined process if your financial situation hasn’t changed.

The clock is also running on available homes. In the DFW metro area, homes typically stay on the market for about 42 to 56 days. In the northern suburbs, however, homes tend to sell faster.

It’s Preparation, Not Commitment

Getting pre-approved for a mortgage does not mean you’re committing to taking out a mortgage. Pre-approval just puts you into position to make an offer on a home and then get financing for that home on a faster timeline with fewer obstacles.

Will you be ready when your dream home catches your eye? To talk about mortgage pre-approval as part of your homebuying strategy, contact a member of the Decker Group at (214) 908-6792 or connect with us online.