Getting Mortgage Pre-Approval

How people buy a home is different today than in the past. Today, the internet and online listings have made the process of finding a home lightning fast.  It is a savvy home buyer that arms themselves with the knowledge of how much home they can afford before they start their house hunt. A buyer can do this by becoming pre-approved for a mortgage loan.

In a competitive real estate market, it is not uncommon for a home seller to receive multiple offers on one property listing. Sellers may interpret not having a pre-approval letter accompanying your purchase offer as you are not a serious buyer. Show home sellers you are a buyer with their “ducks in a row” by becoming pre-approved for a loan before heading out for your first showing.

What Happens During the Pre-Approval Process

Mortgage lenders will issue a pre-approval letter to be used as you house hunt.

A pre-approval letter is issued by a lender after all financial documentation (income, debit, credit, and savings history) is presented for verification and warrants that you are able to obtain a home loan up to a certain dollar amount. A pre-approval letter is typically good only for a limited time period and should be kept up to date. No fees should be assessed for a pre-approval. Though pre-approvals require more paperwork, they’re an essential step to showing a seller that you’re serious.

How the Pre-approval Process Benefits You

Our real estate agents encourage home buyers to work with a mortgage lender to become pre-approved for a home loan. It is to their advantage to go through this process before finding a home.

Pre-approval benefits a home buyer in two ways:

• First, the credit check and necessary requirements for a mortgage will be completed, giving the buyer knowledge if they have the ability to finalize a home purchase. If a credit problem or error is found, there will be plenty of time to correct it before making an offer.
• Second, since documentation has been completed, a mortgage pre-approval will speed up the entire purchase offer process.

Mortgage Lending Professionals

Mortgage professionals will help you set goals and secure a loan that fits your personal needs. Home loans are obtained from a number of financial institutions (banks, credit unions, mortgage bankers, and mortgage brokers). There are mortgage lending professionals working for qualified financial institutions.

DFW Texas Mortgage offers a variety of mortgage products at competitive interest rates and fees for both pre-owned and new home financing.