At Team Nelson, our Flower Mound realtors receive lots of questions regarding pre-approval letters, what they are, and why they need it. We want to help potential buyers looking for a home in Flower Mound, Highland Village, Frisco, Keller, and other popular metro Dallas cities understand the importance of a pre-approval letter and its benefits.
A pre-approval letter is simply verification that the buyer has been pre-approved and would qualify for a specific loan amount at that lending institution. In most cases, a pre-approval letter is valid for a 60 to 90 day period. The loan amount you may qualify for from the lender is typically based on credit and income information you provide.
A pre-approval letter helps both you AND your real estate agent
By having a pre-approval letter for your real estate agent, much time can be saved as your realtor can show you homes that you would likely qualify for, according to the preliminary determination of the loan amount you would likely qualify for. This saves an enormous amount of time, and helps get you into your dream home quicker.
A pre-approval letter could help you avoid having that home you want “snatched” right out from under you. The real estate market is highly competitive in the Dallas area right now; a home you look at today may very well be gone tomorrow. Sellers often take offers from potential buyers who have been pre-approved for a loan more serious than those who do not have a pre-approval letter.
This letter also helps the realtor, in more ways than one. A pre-approval letter saves real estate agents from wasting time with those who simply like to dream, and cannot afford a home. There are plenty of people who like to look at model homes for fun, or who just enjoy “sight seeing” homes. In addition, a pre-approval letter establishes that you truly are who you say you are, an important factor for realtors given the fact that it is so easy to meet up with potentially dangerous characters today considering social media and how easy someone may be “stalked” or targeted online.
Pre-approval letters can help uncover inaccurate information on your credit report. There are many times people find information on their credit reports that is inaccurate, or should have been removed. Finding out that there are issues with your credit report at just the time you are ready to buy your dream home is definitely not a good thing, as these issues can take considerable time to be corrected. In the meantime, that house you just had to have will likely become someone else’s!
At Team Nelson, we want you to be thoroughly prepared when it comes to buying a Flower Mound home, so that you are more attractive to sellers, and don’t miss out on your dream home due to the fact that you have not been pre-approved for a loan. Call us today for more tips to help ensure your success in the home buying process!