Buying a Magnolia TX Home? Get Pre-approved First!
Few people can buy a home for cash. According to the National Association of REALTORS® (NAR), nearly nine out of 10 buyers of Magnolia TX homes finance their purchase, which means that nearly all buyers — especially first-time purchasers — require a loan. The real issue with real estate financing is not getting a loan (almost anyone willing to pay lofty interest rates can find a mortgage). Instead, the idea is to get the loan that’s right for you — the mortgage with the lowest cost and best terms.
Realtors routinely urge prospective buyers to get pre-approved for a loan before they even begin looking at Magnolia TX homes. They also stress the importance of obtaining a letter of pre-approval rather than of pre-qualification. Although many homebuyers use these two terms interchangeably, there are significant differences between the two. Simply stated, pre-qualification lets sellers know that a prospective buyer of their Magnolia TX home is likely to qualify for a loan, whereas pre-approval, although not an absolute guarantee, indicates that a loan officer has determined a borrower is credit-worthy and financially able to qualify for a certain loan.
The advantages of searching for a Magnolia TX home with evidence of pre-approval in hand are many. In essence, they include the following:
- Mortgage preapproval is going to tell you exactly how much money you can borrow. This way, you will know how much your mortgage payment is going to be ahead of time.
- You won’t waste time (or be sorely disappointed) by looking at houses you can’t afford.
- Sellers and Realtors will take you seriously. They are much more comfortable with the certainty that you can obtain a loan (and that the deal won’t fall through), and thus may be more willing to negotiate.
- Once you find a home, the mortgage process can proceed more quickly because your lender will already have.
Although lender requirements for pre-approval may vary somewhat, be prepared to supply the following information:
- Purchase Agreement
- Social Security Number and Date of Birth
- W-2/1040 Forms
- Recent pay stubs
- Bank account statements
- Credit card statements
- Debts and liabilities
- Mortgage or rental histories
- Investment properties
- Asset statements
- Personal property
- Current and previous statements
Supplying all this information may seem like a time-consuming process, but in the end of your house-hunting journey, you’ll be glad you did it!
Whether you are new to the Magnolia Texas real estate market, thinking of moving up, or you’re an experienced investor, Pam Sitterly has the expertise, proven track record, and resources to help you buy Magnolia TX real estate for sale or market Magnolia TX homes for sale. Enthusiasm, knowledge of the area and personal concern for her client’s interests combine to make Pam an outstanding resource for your real estate transactions.
Pam works extensively to help Buyers and Sellers meet their Magnolia Texas real estate goals. For more information about buying or selling your Magnolia TX home, please call Pam at 281-723-0324 or via email with this convenient contact form.