When looking to buy real estate in Massachusetts, it is natural to be very excited and want to start visiting homes as soon as possible. In that excitement, you may overlook the important step of starting a mortgage pre-approval. A pre-approval is a preliminary look at your finances and credit scores to identify whether you may be approved for a mortgage. It is not a promise of a loan, but a guess in lieu of a full mortgage application. Having a pre-approval in-hand is important for a variety of reasons. This blog details reasons why buyers should get pre-approvals prior to seeing homes in Massachusetts or MA.
Understand What You Can Afford
Financing requirements and interest rates change often. A pre-approval will give you an understanding of the programs and alternatives currently available, what your expenses can be, and more importantly, your price range in MA. Without this, you may waste a lot of time looking at properties that do not fit your financing or that are basically beyond your affordability. Identifying your price range also saves you the emotional distress of visiting and falling in love with a property that you cannot have. This is one of the top reasons why buyers should get pre-approvals prior to seeing MA homes.
Strengthening Your Leverage
MA properties with highly sought after amenities or the best price usually sell quickly. A pre-approval gives you the power to make an offer on a hot property. When you write an offer, you normally must provide a pre-approval letter. This illustrates to the seller that you are ready, willing, and able to purchase. It is unlikely that a seller would accept an offer and take their home off the market without any verification that a buyer can even obtain a loan. In multiple offer situations, a pre-approval is even more essential.
Saving Time
A pre-approval saves time when making an offer and on the processing of a loan. Many Massachusetts sellers will not look at an offer without a pre-approval. Not having one in-hand will lead to delays in completing your offer and may result in a missed opportunity. Pre-approvals involve verification of income, assets, debts, etc. This could take some time depending on whether you have the documentation readily available. Errors in your credit reports can lead to more delays. Beginning and completing this step ahead of time will also save valuable time when processing your loan and completing a quick closing.
Reasons Why Buyers Should Get Pre-approvals Prior To Seeing MA Homes
The details above on reasons why buyers should get pre-approvals prior to seeing MA homes is something to keep in mind when thinking of purchasing a home. The real estate process can be complicated enough. Being diligent and prepared can reduce the stress and problems encountered along the way. For additional guidance, contact Christopher Graves at Emery Federal Credit Union by emailing christopher.d.graves@gmail.com or calling 781-759-1200 x22.