When looking to buy properties, it is natural to be very excited and want to begin seeing homes right away. In that excitement, you may overlook the vital step of starting a mortgage pre-approval. A pre-approval is a preliminary look at your finances and credit ranking to determine whether you are likely to be approved for a loan. It is not a guarantee for a loan, but a fair estimation in lieu of a full mortgage application. Having a pre-approval letter ready is essential for different reasons. This article details reasons why buyers should obtain pre-approvals prior to visiting Boca Raton FL real estate.
Know Your Price Range
Mortgage requirements and mortgage rates change often. A pre-approval provides a good understanding of the loans and alternatives currently available, what your up-front expenses may be, and more importantly, your price range. Without this information, you may waste a lot of time viewing properties that you can not finance or that are basically beyond your affordability. Identifying your price range also minimizes the heartache of viewing and falling in love with a property that you cannot purchase. This is one of the most important reasons why buyers should obtain pre-approvals prior to visiting Boca Raton FL real estate.
Buying Power
Boca Raton FL properties with highly sought after amenities or the best price tend to move fast. A pre-approval gives you the power to act on a hot listing. When you submit an offer, you normally must enclose 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 consider an offer and waste their time without any evidence that a buyer can even pay for the real estate. In multiple offer situations, a pre-approval is even more vital.
Saving Time
A pre-approval saves time when making an offer and when your loan is processed. Most sellers require a pre-approval with offers. Not having one ready may lead to delays in completing your offer and may cause you to miss out on a home. Pre-approvals consist of verification of income, assets, debts, etc. This can take a couple of days based on whether you have the documentation available. Errors in your credit reports can result in more delays. Starting and completing this step in advance will also save significant time when processing your loan and accomplishing a quick closing.
Reasons Why Buyers Should Obtain Pre-approvals Prior To Visiting Boca Raton FL Real Estate
The information above on reasons why buyers should obtain pre-approvals prior to visiting Boca Raton FL real estate is something to remember when thinking of purchasing a home. The real estate process can be complicated and stressful to begin with. Being proactive and prepared can reduce the stress and issues encountered along the way. For additional information, contact Sonny Solomon at The Keyes Company by emailing sonny@sonnysolomon.com or calling 561-247-1047.
