Looking at homes for sale Flower Mound TX can be extremely exciting, especially if you are buying your first house. However, it’s often too easy for future homeowners to get caught up in this whirlwind and forget about what needs to be done before they start packing their belongings. Getting pre-approved for a mortgage is one of the big needs. While obtaining a mortgage pre-approval isn’t always necessary, it’s definitely a good idea for several reasons.
What is a Pre-approval?
It’s important to understand that a mortgage pre-approval is different than a mortgage pre-qualification. The difference is that with a pre-qualification, the mortgage lender uses the buyer’s information to estimate how much they are eligible to qualify for. In comparison, a mortgage pre-approval verifies the future buyer’s information and documentation and lets them know exactly how much they are willing to lend to them.
No Approval, No Offer
In many cases, those looking at homes for sale Flower Mound TX risk getting their offer denied after they’ve found their dream home if they don’t already have a mortgage pre-approval in place. This can be particularly problematic if you’ve found a home that you love but you are in competition with several other buyers interested in the property.
Face Your Loan Reality
Although securing a loan can be a long and tedious process, it is best to get started as soon as possible after you make the decision to start looking at homes for sale Flower Mound TX. Not only will this minimize the chances of your offer on a house getting denied, but it will also help your realtor know which homes to show you.
During the pre-approval process, your lender will likely require you to provide them with a variety of different documentation like recent tax returns, pay stubs, proof of residency, and more. Additionally, your lender may also ask you certain questions, such as:
- How much do you make on an annual basis?
- How long have you been working at your current job?
- How much money do you have in all of your bank accounts
Your income and your assets are two key factors that lenders consider when they determine how much they will offer you for a mortgage. During this stage of the pre-approval process, it is best to be open and honest with your lender and provide them with accurate documentation in order to prevent problems in the future.
The next time you get the itch to start looking for a new house, pace yourself and head over to your lender’s office to start the pre-approval process before you do anything else. Then when you are ready, call Sean May Homes at 972-355-3594 to get started looking at homes today!