Ever had an agent deny to show you a home because you weren't pre-approved for a mortgage? It's not because they're mean, or they don't value your business... it's actually because they're looking out for your best interests. Let's face it, shopping for a home before getting pre-approved for a mortgage is like walking into a grocery store without a wallet. You may have the desire to buy, but you lack the ability. Let’s cover some basics...

What is a mortgage pre-approval?

In a nutshell, a mortgage pre-approval is written assurance from a lender or broker that you’re able to borrow money to purchase a home up to a certain amount. It’s based on the income, employment and asset documentation you supply at the time of application, in conjunction with your credit history. So let's look at the 6 reasons you should get pre-approved.

1. It carries more weight than a “pre-qualification”.

A pre-approval differs from a pre-qualification. With the former, the lender has actually checked your credit and verified your documentation to approve a specific loan amount (usually for a particular time period such as 30, 60 or 90 days). A pre-qualification can be useful as an estimate of how much you can afford to spend on your home, but it’s a less accurate indicator of your ability to purchase. A pre-approval always carries more weight.

2. You’ll know how much house you can afford.

Getting pre-approved before you begin house hunting allows you to know how much house you can realistically afford. Knowing this narrows down the options and makes the selection process more efficient. Not to mention, it protects you from the unpleasant surprise of realizing the home you fell in love with doesn’t fit your budget.

3. It adds clout to your offer.

In many markets, homes attract more than one offer. If the sellers are weighing one offer against another, they may lean towards the one accompanied by a pre-approval letter. That’s because pre-approvals instill confidence that the buyer is financially capable of purchasing their home.

4. It could increase your negotiating power.

In addition to strengthening your offer when compared to buyers who haven’t taken this step, getting pre-approved may give you the upper-hand when negotiating the price. If the homeowner is eager to sell, they may be more willing to accept a lower offer from someone they’ve been assured is financially capable of purchasing their home.

5. It saves time.

Obtaining a mortgage is a lengthy process. Getting pre-approved ahead of time shortens the time between contract to close -- this way you’re ready to proceed with finalizing the mortgage once you’ve found the home you want to purchase.

6. Without it, most agents won’t work with you.

Makes sense, too. Right? Think about it: when you hire an agent, he/she will invest countless hours showing you homes over the course of your house hunt. If you were in their shoes, wouldn’t you want assurance that your hard work would lead to a favorable outcome for both you and your client?

GroupWatson's *FEATURED LISTING OF THE WEEK*

6212 Pebble Beach Lane

 

PROPERTY DETAILS
$320,000
LISTING INFORMATION
MLS: 13522877
Bedrooms: 4
Full Baths: 2
Partial Baths: 1
Sq ft: 2859
Lot Size: 0.153
Taxes: $0.00
PROPERTY DESCRIPTION

Enjoy Quiet Afternoons on the Oversized Back Patio in this Immaculate 2 Story Home that Features 4 Bedrooms, 2.5 Baths & 2 Car Gar + Formal Dining & Study. Perfectly Updated w'Extensive Wood Floors, New Baseboards & Fresh Interior Paint. The Island Kitchen has New Granite Counters, Stainless Steel Appliances, Stone Back Splash, 42 Inch Cabinets & is Open to the Breakfast Nook with a Window Seat. Spacious Living Room has Vaulted Ceilings, a Cast Stone Gas Log Fireplace & a Wall of Windows Over Looking the Back Yard. Master Suite Features a Luxury Bath Complete with Double Sinks, Split Vanities, Jetted Tub & Large Separate Shower. Upstairs has 3 Bedrooms & Game Room. Within Walking Distance to Lake & Schools.

CONTACT INFORMATION
Scott and Tammy Watson
GroupWatson, Keller Williams
4862 State Hwy 121, Ste. 210
Lewisville 75056

Phone: 214-682-7002
Fax: 214-522-5519
http://www.groupwatson.com/
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