Many California and Texas homebuyers should get pre-approved before looking for a house to make their offers more competitive. The California and Texas real estate markets are in high demand, with a lot of competition for limited inventory. Homebuyers who have a mortgage pre-approval are able to compete better in hot housing markets.
What Is A Mortgage Pre-Approval?
While the pre-approval process differs per lender, this is how it generally works. First, homebuyers fill out the application and upload their financial documents (e.g., W2 forms, tax returns, bank statements, and pay stubs). Next, the lender will examine the documents and pull the homebuyer’s credit report.
Buyers will be pre-approved for a specific loan amount based on the lender’s review of their application and credit report.
4 Reasons To Get Pre-Approved Before Looking For A Home
Homebuyers who get pre-approved before looking for a home have many advantages, especially if they plan to buy in a competitive market like California or Texas.
1. Sellers Consider Offers More Seriously
Sellers are more willing to accept offers from pre-approved buyers. A mortgage pre-approval from a reputable mortgage lender, like JVM Lending, carries a lot of clout for sellers. Pre-approved offers have a higher probability of getting accepted.
2. Find A Real Estate Agent Easier
Most real estate agents prefer to work with buyers who already have a mortgage pre-approval. Realtors recommend that every prospective buyer start the homebuying process by getting pre-approved. Pre-approvals show what loan options and property types buyers can qualify for and determine location and budget considerations.
3. Focus Home Search & Budget
Pre-approvals can help homebuyers focus their property search immensely. Pre-approvals determine what buyers can afford and what they are comfortable spending on a housing payment. Mortgage analysts provide valuable insight for buyers by explaining what future payments will look like. Their advice can help narrow the home search to properties that fit the buyer’s budget and lifestyle.
4. Greater Opportunity For Success
The key takeaway is that mortgage pre-approvals significantly improve homebuyer’s chances for success! Pre-approvals guide the home search and increase the likelihood of sellers accepting the offer. Pre-approved buyers are more likely to be homeowners faster with fewer roadblocks in the mortgage process!
Ready Get Pre-Approved For A Mortgage?
This blog covers a few of the reasons why homeowners should get pre-approved before looking for a home. JVM Lending has made the pre-approval process quick, easy, and painless for all our buyers. To learn more about getting pre-approved, contact our expert team of mortgage analysts by phone at (855) 855-4491 or by email [email protected].