Why is Pre-Approval Necessary in today's Market?
Why You Need to Get Pre-Approved
Today, we will discuss the importance of the pre-approval process. You should get pre-approved before you begin your home search.
In this fast paced seller's market, many homes are receiving multiple offers. Many times the thing that puts your contract in front of others is having that pre-approval letter above and beyond the pre-qualification letters that other buyers might present.
By speaking to a lender before you begin your search, you will find out what price range you should look in. This ensures that you know what you can afford. If you don't know what you can afford before you start looking, you might fall in love with a $200,000 house when you can only afford a $150,000 house. Every home you see after that will fall short of the $200,000 house you fell in love with but can't afford. My job, beyond helping you find a new home, is to make sure that you can afford that home. I know very well how it feels to be stretched too thin from high house payments and crazy high property taxes.
It's very easy to obtain a pre-approval. First, contact a lender. I can put you in touch with a local lender who knows the Parker County and DFW area. The benefit of working with a local lender is that they know me and the agents on my team, and they are much more active as far as keeping us updated on your progress throughout the transaction. I have two ladies I recommend to all of my clients. One offices in our office here in Weatherford TX, and the other helped me obtain financing for my personal home. They are both extremely knowledgeable and great to work with!
Local lenders also have the advantage of knowing the market and what loan types are commonly accepted by sellers. The lender will tell you what loan you should apply for, how much you can afford, and what you need for the down payment. Most lenders can get you a pre-approval through a simple online process.
Getting pre-approved before you start looking for a home gives you a huge advantage. You are able to move quickly when you find the home you want. We are still seeing a lot of multiple offer situations, and most sellers are asking that buyers attach pre-approvals with their offers. If you aren't pre-approved already, you could miss out on that house you really wanted.
What Paperwork do I need for Pre-Approval?
· Last 30 days paystubs
· W-2 for 15 and 16
· Income tax returns for 2016
· Last 2 months of bank statements (all pages)
· Last quarter or 2 months of PNC Investments statement (all pages)
I know it's a pain to get all of this paperwork together, but when you are competing for an executed contract against other offers.... this is well worth the time. Also, most seller's won't even consider an offer unless it is accompanied by an approval letter!
Questions? Call Heather - 817-771-1360