Getting preapproved for a home loan is one of the most important steps in the home buying process.
If you’re a first time homebuyer, the process of buying a home can feel daunting. Not only do you have to consider your needs and wants for your future home, but you also have to think about the logistics of the purchase – like getting preapproved for a loan.
The pre-approval for a home loan shows that you’re serious about buying a home and that you’re qualified to borrow a certain amount of money. Plus, it gives you some peace of mind – you know how much house you can afford and you won’t waste your time looking at houses that are out of your price range.
Before you start shopping for your new home, you need to be Preapproved for the loan.
If you’re thinking about buying a home in the Dallas area, it’s important to start by getting preapproved for a loan.
Here are some reasons why:
1. Your TIME and ENERGY are PRICELESS
There’s no doubt that buying a home is a huge commitment. It can take months – to find the right house, make an offer, get approved for a loan, and close on the sale.
By getting preapproved, you can save yourself time and energy by narrowing down your search to houses that are within your price range.
Preapproval can speed up your final mortgage approval! If time is of the essence and you want to get into a home quickly, you need to go through Preapproval process.
2. Your offer will be taken more seriously
When you’re buying a house, your offer is only as good as your proof of funds. If you’re not preapproved for a loan, potential sellers may not take your offer seriously because they don’t know if you have the financial means to buy their house. Being preapproved tells sellers that you have the financial resources to back up your offer. This could give you an edge over other buyers who are still waiting on their loan approval.
3. Prevents you from falling in love with a house for which you cannot qualify
It’s easy to get attached to a certain house when you’re browsing through listings online or driving around town looking at open houses. But if you’re not preapproved for a loan, there’s always the risk that you might fall in love with a house that’s out of your price range. By getting preapproved,you know exactly how much money lenders are willing to lend you and this will help preventyou from falling in love with a house that you can’t afford.
4. Allows Lender time to use creative problem solving to determine if qualifying is possible
Sometimes first-time buyers have credit issues that need to be resolved before they can qualify for a loan. In these cases, preapproval gives the lender time to work with the buyer and come up with creative solutions that may allow them to still buy a home.
Pre-qualification and Pre-approval are two different things when it comes to buying a home.
If You Are Prequalified
it means that:
- The buyer’s information has been reviewed by the loan officer
- The buyer MAY OR MAY NOT have submitted documentation to the lender
- The loan officer MAY OR MAY NOT have provided information to underwriting for review
A mortgage pre-qualification can be useful as an estimate of how much you can afford to spend on your home.
If You Are Preapproved (Credit Approval)
it means that:
- The buyer’s information has been reviewed and approved by an underwriter
- The buyer has submitted all loan documentation required for credit approval
A pre-approval is much more valuable because it means the lender has checked your credit and verified your documentation to approve a specific loan amount (usually for a particular period, such as 90 days).
There are a few things you need to do before you can get preapproved. Also keep in mind that the preapproval amount is not set in stone and may change depending on the home you choose and the market conditions. Talk to a lender today to get started on the preapproval process.
Looking to buy a home in the Dallas-Fort Worth area?
Call/Text 214.940.8149
As your Realtor®, I want to help you find the perfect home, whether it’s a new construction home or an existing one. If you’re a first time homebuyer, or relocating to the Dallas area and need help finding a new home I’ll guide you through the process and help find the best home for your needs.
Check out my other articles for more helpful information about the home-buying process.
For many, buying a home for the first time can seem like a daunting task. Rest assured, it doesn’t have to be, and I’ve got you covered! Being a confident home buyer starts by understanding the simple basics and increasing your awareness of what to expect during the home buying process. Once you become an informed first-time homebuyer, you will reduce your stress, increase your confidence, and be one step closer to owning your first home.
Get your home buying jump-start right now by checking out my other articles linked below.
– The Process Of Buying A House in Dallas Texas
– How Long Does It Take To Buy A House in Dallas?
– Professionals You Deal with When Buying a House
– 6 Reasons Why You Need A Realtor® To Buy A Home In The Dallas Area
– Pre-qualified vs Pre-approved
– What Documents Do You Need To Apply For A Mortgage?
– Do’s and Don’ts After Applying for a Mortgage
– What Happens Next After You Sign a Home Purchase Contract?
– Closing on a Home in Dallas Texas – What to Expect and How it Works. Step-by-Step Guide
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Latest from Dallas Real Estate Blog
The Buyer’s Agent Duty
READ: Texas Real Estate Commission Information About Brokerage Services
AS AGENT FOR BUYER/TENANT: The broker becomes the buyer/tenant’s agent by agreeing to represent the buyer, usually through a
written representation agreement. A buyer’s agent must perform the broker’s minimum duties above and must inform the buyer of any
material information about the property or transaction known by the agent, including information disclosed to the agent by the seller or
seller’s agent.
A BROKER’S MINIMUM DUTIES REQUIRED BY LAW (A client is the person or party that the broker represents):
– Put the interests of the client above all others, including the broker’s own interests;
– Inform the client of any material information about the property or transaction received by the broker;
– Answer the client’s questions and present any offer to or counter–offer from the client; and
– Treat all parties to a real estate transaction honestly and fairly.