So, you’re ready to shop for a home. In today’s economy, it can be more important than ever for the search for your perfect home to begin in a lender’s office rather than at a realtor’s open house.
Today’s home buyers should to be armed with a mortgage pre-qualification or a mortgage pre-approval letter to be seriously considered by a seller when making an offer, particularly in Texas and Oklahoma where buyers may outnumber homes for sale.
Meet With a Lender
Any potential home buyer will benefit from beginning their new home purchase by meeting with a lender. By consulting with the lender first, the buyer will have the opportunity to learn about various loan options and understand the necessary budgeting needed to successfully satisfy the loan. The potential buyer will also gain valuable information concerning their credit, how their respective scores may affect their borrowing ability and, based on credit reports reviewed by the lender, will be able to identify issues that may need correction to improve their borrowing position.
Potential buyers will also learn the maximum amount they are eligible to borrow which will give them their realistic price range for home shopping. The lender will also estimate the mortgage payments the buyer can expect for various home prices. These things will allow the buyer to make informed and responsible decisions in what price they can comfortably pay to own their home.
Attain a Pre-Approval Letter
Having determined what level of financing the buyer is qualified to pursue, the buyer can be in possession of a pre-approval letter to make available to sellers assuring the seller that the offer the buyer is making is viable. A mortgage pre-approval letter may be the key that opens the door to negotiation, with proof of financing, the buyer may have some degree of leverage.
Mortgage pre-qualification is very useful in giving the buyer a reasonable idea of how much they can afford to spend on a home. Mortgage pre-approval is a powerful tool because the seller then knows the buyer’s credit has been checked by a lender, income has been verified, and the buyer is approved to borrow up to a specific amount to secure the home. The final loan approval for the mortgage happens when the buyer’s offer has been accepted, an independent appraisal of the property is complete, title examination is done, and underwriting conditions have been met.
We’re Here to Help
If you are looking to purchase a home in Texas and would like assistance with a mortgage pre-approval or pre-qualification, contact the team at The Decker Group – (972)-591-3097.