The Prepared Buyer - Charlotte Loan Pre Approval Process

If you are getting ready to buy a home, do not forget the important first step of receiving a loan pre-approval. A pre-approval involves reviewing your finances and credit history to gauge your eligibility for a mortgage. It is not a promise of a mortgage, but the best estimation prior to a complete application. Having a pre-approval is a good idea for a variety of reasons. This blog details advantages of loan pre-approvals prior to viewing NC homes. 

Understand What You Can Afford 

Financing options and interest rates will vary. A pre-approval provides clarity on the loans and options currently available, what your expenses can be and most importantly, your price restrictions. Without this information, you might waste valuable time and energy looking at homes that are not feasible.

Buying Power 

Great homes, priced right, have a tendency to go under contract quickly.  A pre-approval provides you with the option to act on a hot listing. When you submit a offer to purchase you normally must provide a pre-approval letter. This shows the other party that you are ready and capable of completing the purchase. It is unusual that an owner will consider an offer and take their property off the market without any indication that the person can even get financing. In multiple-offer scenarios, a pre-approval will make a big difference. 

How You Spend Your Time 

A pre-approval saves time during offer preparation and during loan processing. Many home sellers request a pre-approval with offers. Failing to have one ready may lead to delays in submitting an offer and may cause you to lose out on a property. Pre-approvals involve analyzing income, personal assets, recurring debt etc. This can take a couple of days based on whether you have the paperwork available. Errors in your credit file can result in additional delays. Starting ahead of time will also save some time when processing your mortgage and achieving a quick closing. 

Advantages Of Loan Pre-approvals Prior To Seeing NC Homes 

The information in this blog on advantages of loan pre-approvals prior to seeing NC homes are for consideration as you start to think about a home purchase. The real estate process can be complicated and stressful already. Being diligent and prepared can reduce problems.