In the US, it’s an exciting time to be property hunting right now. With the real estate industry experiencing a boom, homes are going on and off the market in a matter of days in the midst of the home-buying frenzy.
On your way to homeownership, you’re going to encounter several stages before the final closing can even happen. Of all the steps, there’s one that’s particularly crucial when it comes to improving your prospects of safely securing the house of your dreams. It has to do with getting pre-approved for a mortgage.
In Texas, a mortgage is a loan you can get through a bank or a mortgage lender in order to purchase the home you want. It lets you become a homeowner quickly rather than having to save up for years, and you get to pay the money back in installments over time.
What is a Mortgage Pre-Approval?
If you want to come across as a serious buyer, you need to prove that you have the finances lined up for the property you’re interested in. Since home sellers only want to deal with serious buyers, people who aren’t pre-approved for a mortgage are at a disadvantage. A lot of sellers even list having mortgage pre-approval as a requirement before they’re ready to consider your offer to purchase their house.
A mortgage pre-approval is a document that lays out how much loan a mortgage lender is willing to give to you. Once you’ve received your mortgage pre-approval letter, you’re seen as a serious buyer by both the sellers and the real estate agents.
How Do You Get Pre-Approved?
The pre-approval process involves a thorough look into your identity, employment status, assets, and income. On top of verifying your identity documents, you’ll also have to let the lender run a credit check on you. Getting a pre-approval can be quite difficult, but the effort and time are worth it once you’ve secured the loan.
However, it’s important to understand that a pre-approval does not always guarantee that you’ll get the loan. But if you didn’t hide any important details of your financial situation from your lender, your chances of securing the loan you were approved for are very high.
How Long Does a Preapproval Last?
Once you’ve been pre-approved for a loan, the status is only valid till a couple of months. During this time, you should get to the task of house hunting immediately. If you’re unable to find a home, you’ll have to go through another approval process all over again.
Of all the ways you can boost your worth as a homebuyer, getting pre-approved for a loan is among the best. The loan pre-approval process can be daunting, but it’s easier with a loan officer by your side to guide you. Connect with loan officers at Z Finance Solutions in Texas to be approved for a mortgage loan easily.
