Advantages Of Home Loan Pre-approvals Before Seeing New Jersey And Pennsylvania Homes

When thinking about purchasing properties, it is natural to be very excited and want to begin viewing properties right away. In that excitement, you may hold off on the critical step of obtaining a mortgage pre-approval. A pre-approval is a introductory review of your finances and credit worthiness to identify whether you are likely to be approved for a loan. It is not a promise of a mortgage, but a guess in lieu of a full mortgage application. Having a pre-approval letter in-hand is essential for a variety of reasons. This article details advantages of home loan pre-approvals before seeing New Jersey and Pennsylvania homes.

Know Your Options

Mortgage options and interest rates change often. A pre-approval provides a good understanding of the loans and alternatives currently available, what your expenses will be, and more importantly, what you can view. Without this, you may waste valuable time viewing homes that do not fit your financing or that are merely beyond your affordability. Identifying your price range also prevents the heartache of visiting and wanting a property that you cannot have. This is one of the most important advantages of home loan pre-approvals before seeing New Jersey and Pennsylvania homes.

Strengthening Your Leverage

New Jersey and Pennsylvania homes with highly sought after amenities or the best price tend to move fast. A pre-approval gives you the option to act on a hot property. When you submit an offer, you typically must include a pre-approval letter. This ensures the seller that you are ready, willing, and able to buy. It is rare that a seller would consider an offer and waste their time without any evidence that a buyer can even obtain a loan. In multiple offer situations, a pre-approval is even more vital.

Time Savings

A pre-approval saves time when making an offer and on the processing of a loan. Most sellers request a pre-approval with offers. Not having one prepared may lead to delays in submitting your offer and may result in a missed opportunity. Pre-approvals involve reviewing documentation of income, assets, debts, etc. This can take some time depending on whether you have the paperwork readily available. Errors in your credit reports can lead to more delays. Starting and completing this step ahead of time will also save valuable time when processing your loan and achieving a quick closing.