Why get pre-approved first?
Because it’s no fun to fall for a house and then find out what you can borrow. When you get approved first, you shop knowing your number. You know what you qualify for and what your options are, so you spend your Saturdays looking at houses that actually fit.
It also changes how you look at a house. You’re not wondering whether you can do it. You’re deciding whether you want to.
What does a pre-approval check?
Three things.
- Your credit. Your history with debt and what you owe each month. We start with a soft credit pull, which doesn’t touch your score. If we move forward to a full approval, I’ll tell you before anything else gets pulled.
- Your income. What you earn and how steady it is. A salary, hourly pay, commission, self-employment, and retirement income all get documented a little differently.
- Your money. What you have for the down payment and closing costs, and where it’s sitting.
Put those together and you get the loan types that fit and a price range that makes sense for your payment, not just the most a lender will allow.
What should I send?
It depends on the loan. Usually it’s pay stubs, W-2s or tax returns, and bank statements. I’ll send you a short list so you’re not guessing. The application itself takes about five minutes. Send it early and send it complete, and the rest goes faster.
How does it help my agent win the house?
Get approved first so your agent can win you the house. When your agent writes an offer, the seller wants to know the buyer can close. A pre-approval letter answers that question before they ask. Even better is True Approved, which means underwriting has already reviewed your file. Then the seller knows underwriting has already looked at it, and your offer carries more weight.
In Texas, your offer will usually include the Third Party Financing Addendum, which ties the contract to your loan and sets a deadline for your approval. Getting approved up front makes those days a lot less tense. Your agent will also likely write in an option period, your window to get inspections done and back out for any reason. Knowing your money is handled lets you use that time on the house itself.
How do I pick an agent after I’m approved?
If you have an agent you trust, or a best friend in the business, use them. I’ll keep them in the loop if you want me to. If you don’t have one, I’ll introduce you to a good one. Good agents and good loan officers make each other’s lives easier, and the agent is the one who’ll walk the houses with you and fight for you in the negotiation.
Why are you talking about clouds?
Honestly, no idea. They were cirrostratus clouds, and maybe a mare’s tail. I don’t know much about meteorology. I do know money for real estate.
Ready to start?
Start the short application, or call me at 817-873-6288. Tell me what you’re looking for and where, and I’ll tell you what you qualify for and what I need next. Then go fall in love.