If you are getting ready to buy real estate, do not miss the critical first step of obtaining a home loan pre-approval. A pre-approval involves evaluating your finances and credit rating to gauge your ability to obtain a home loan. It is not a promise of a mortgage, but the best estimation in lieu of a complete application. Receiving a pre-approval is important for several reasons. This blog provides why home buyers should be pre-approved prior to viewing Franklin TN homes.

Know Your Price Range

Loan options and interest rates will vary. A pre-approval provides a handle on the loans and alternatives that you can use, what your expenses can be, and more importantly, your price range. Without this, you will waste valuable time and energy looking at properties that you can not finance. It is also better not to want a home beyond your price range.

Increasing Purchase Power

Homes with desirable features or great prices always move quickly. A pre-approval gives you the ability to make an offer on a hot listing. When you prepare an offer, you normally must provide a pre-approval letter. This illustrates to the other party that you are prepared and capable of moving forward. It is unlikely that an owner will accept an offer and move forward with a buyer without any verification that a person can actually pay for the real estate. When there is more than one offer, a pre-approval will make a significant difference.

Timing Issues

A pre-approval saves time when making an offer and on the processing of a home loan. Most home sellers will not accept an offer unless there is a pre-approval. Not having one ready will lead to delays in submitting your offer and can result in a missed opportunity. Pre-Approvals entail analyzing earnings, personal assets, recurring debt, etc. This can take several days depending on whether you have the documentation in-hand. Mistakes on your credit reports may result in additional delays. Planning ahead of time will also save valuable time in processing your mortgage and completing a fast closing.

Why Home Buyers Should Be Pre-Approved Prior To Viewing Franklin TN Homes

The information in this blog on why home buyers should be pre-approved prior to viewing Franklin TN homes is for consideration of those thinking of buying property. The home buying experience can be complicated enough. Being diligent and prepared can help reduce difficulties, stress, and time. For additional information, contact Jim Eaton at Blueprint Realty, Inc.