When thinking about purchasing real estate, it is understandable to be very excited and want to start visiting properties right away. In that excitement, you may delay the vital step of requesting a mortgage pre-approval. A pre-approval is a basic review of your finances and credit worthiness to determine whether you are likely to be approved for financing. It is not a guarantee for a mortgage, but the best estimation prior to a full mortgage application. Having a pre-approval ready is important for many reasons. This article details reasons why buyers should obtain pre-approvals before seeing Burlington MA real estate.
Understand Your Price Range
Mortgage requirements and interest rates change frequently. A pre-approval will give you a clear understanding of the programs and alternatives available, what your up-front expenses will be, and more importantly, your price range. Without this, you may waste valuable time looking at homes that you can not finance or that are simply beyond your affordability. Knowing your price range also minimizes the emotional distress of viewing and wanting a home that you cannot purchase. This is one of the most important reasons why buyers should obtain pre-approvals before seeing Burlington MA real estate.
Strengthening Your Leverage
Burlington MA real estate with highly sought after amenities or the best price always move fast. A pre-approval gives you the power to make an offer on a hot listing. When you submit an offer, you usually must include a pre-approval letter. This illustrates to the seller that you are ready, willing, and able to purchase. It is unlikely that a seller would accept an offer and take the chance on a buyer without any verification 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 during the offer process and when your loan is processed. Many sellers require a pre-approval with offers. Not having one ready will lead to delays in submitting your offer and may cause you to miss out on a property. Pre-approvals entail verification of income, assets, debts, etc. This may take some time depending on whether you have the information available. Errors in your credit reports can lead to additional delays. Starting and completing this step in advance will also save valuable time when processing your loan and achieving a quick closing.
Reasons Why Buyers Should Obtain Pre-approvals Before Seeing Burlington MA Real Estate
The details above on reasons why buyers should obtain pre-approvals before seeing Burlington MA real estate is something to remember when thinking of buying real estate. The real estate process can be complicated and stressful to begin with. Being diligent and prepared can minimize the stress and problems encountered along the way. For additional information, contact Peter DaMore at Law Offices of Peter T. DaMore Jr. by emailing firstname.lastname@example.org or calling 781-229-7900.