Get Pre-Approved Before Buying A Home
Beginning your search for your next piece of Houston real estate is a very exciting time of your life. Many families begin this process shortly after graduating a college degree program, having their first child, or getting a much needed raise in income from their employer.
The home buying process can be a smooth one as long as you are prepared to make informed and intelligent decisions when you finally find that perfect home. Finding the perfect home isn't easy; being prepared to make a decision with your financial pre-approval in hand will help you make the right decision.
Pre-Qualification and Pre-Approval
There are two types of loan approvals when seeking financing for your home; pre-qualified and pre-approved.
Pre-qualified simply means that you submitted your personal information to a mortgage professional and your credit has been verified to allow you to take advantage of a particular loan program. The next step in the process is to submit all of your supporting documentation to your mortgage professional to verify that the income, balances on accounts, and credit history is true and accurate before submitting your loan application for final approval.
Once your supporting documents have been verified by your mortgage professional, you are then promoted to the next stage of the home buying process. You are now pre-approved to buy a home.
To summarize, pre-qualification is simply a credit check. Pre-approval is when all of your supporting documents have been verified.
Many real estate agents will allow you to view homes with a pre-qualification letter from a mortgage professional. It has been my experience that this may sometimes cause unwanted stress and frustrations later in the transaction when under contract on a home.
If you haven't fully verified that there will be no surprises on your loan by offering in advance your supporting documents, then you are opening yourself up for possible tension later in your real estate purchase. Getting your pre-approval prior to submitting an offer on a home is a preferred approach for all buyers to ensure that their real estate buying experience is smooth and pleasurable.
When You Should Get Approved
It is even advised to get this approval prior to stepping foot in a home. When you find the perfect home you want to be sure that there will be no roadblocks to you acquiring it. Not being prepared with your financing pre-approval is a roadblock that can cause delays, and may even cause you to lose your perfect home.
Remember: Someone may have seen the home yesterday, thought about it last night, and could be placing an offer the very day of your showing.
In the end, you are given the option to be as prepared as you want to be. With such a large sum of money you are about to invest in Houston real estate, I urge you to consider the benefits of getting pre-approved prior to viewing homes to ensure a stress-free real estate transaction.
About the Author
Steve Castaneda, Realtor, is a Houston real estate consultant that focuses on making sure his buyers make the most informed and intelligent decisions possible with their next real estate transaction.
He takes pride in offering the latest technology, excellent level of service, and open communication to each and every one of his clients.
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