Chris  Schmidt
Chris Schmidt
Owner/Broker

Do You Look for a Houston House or Get a Loan First?

Do you look for a house or get a loan first? Jumping straight into house hunting may seem like the natural first step. However, most real estate experts strongly recommend starting the mortgage loan process first by applying for pre-approval.

In this blog post, Houston realtor Chris Schmidt and the professionals at Your Home Sold Guaranteed Realty - Chris Schmidt Team will discuss why you should get a loan first before looking for a house.

Key Takeaways:

  • Pre-approval involves providing documentation on your income, debts, assets, employment status, and credit profile to a lender. The lender will analyze your debt-to-income ratios, credit scores, down payment funds, and other financial factors.
  • No matter what, you’ll have to get pre-approval sooner or later. And if you choose to do so later, any home viewings with your realtor are essentially a waste of time if the properties don’t end up fitting within the price range you’ll ultimately be approved for.
  • Beyond making a better use of your time and effort, getting pre-approval is also helpful when it comes time to submit offers. It signals to home sellers that you are a qualified buyer who’s able to secure financing.

Do You Look for a Houston House or Get a Loan First?

Getting pre-approval for a mortgage is one of the first steps to buy a home in Houston, for good reason. Pre-approval involves providing documentation on your income, debts, assets, employment status, and credit profile to a lender.

The lender will analyze your debt-to-income ratios, credit scores, down payment funds, and other financial factors. Based on that, they will determine the maximum mortgage amount and corresponding home price you can qualify for.

Completing this step first before looking at homes is important because it’s the only way to truly understand how much house you can realistically afford.

No matter what, you’ll have to get pre-approval sooner or later. And if you choose to do so later, any home viewings with your realtor are essentially a waste of time if the properties don’t end up fitting within the price range you’ll ultimately be approved for.

In addition, many realtors like to see that you already have pre-approval before working with you. That way, they don’t make the mistake of showing you homes outside of your pre-approved budget, which wastes their time as well as yours.

Benefits of Getting Pre-Approval First

Pre-Approval Shows You’re a Qualified Buyer

Beyond making a better use of your time and effort, getting pre-approval is also helpful when it comes time to submit offers. It signals to home sellers that you are a qualified buyer who’s able to secure financing. In competitive markets like Houston, sellers give preference to offers accompanied by a lender’s pre-approval letter over those without one.

When every advantage counts in a real estate transaction, having pre-approval gives you credibility. It shows that you have the financial qualifications and down payment funds to get a loan and ultimately close on the purchase.

Pre-Approval Aligns Your Budget with Your Home Search 

Once pre-approved, you can partner with your realtor to identify homes that fit squarely within the price range you’ve been approved for based on your finances and lender requirements. There’s no more guesswork or stretching beyond your means.

With a clear budget in mind, you can focus on properties you know you can realistically afford. This creates a smoother path to drafting a strong offer and successfully closing on your dream Houston home when you find it.

Ultimately, being pre-approved is not a guarantee of final mortgage approval. However, it’s still important because it provides the critical first step in confirming your qualifications and purchasing power. That confidence allows you to pursue your home search efficiently.

Call or Text Chris Schmidt Today to Get Your Mortgage Loan Process Started!

Your Home Sold Guaranteed Realty - Chris Schmidt Team. Do You Look for a Houston House or Get a Loan First?
Chris Schmidt

Chris Schmidt is the owner of Your Home Sold Guaranteed Realty – Chris Schmidt Team. He has 20+ years of experience in real estate and is deeply familiar with the Houston housing market. He’s a member of the Houston Association of Realtors and has earned the Graduate, Realtor Institute designation from the National Association of Realtors.

He began his real estate career in 2004, when he joined Coldwell Banker United as a broker associate. He worked as a broker associate for over 10 years before deciding to begin his own real estate and mortgage lending team.

If you work with Chris Schmidt and the agents at Your Home Sold Guaranteed Realty – Chris Schmidt Team, you’ll have nothing to worry about on your home purchase or sale of your home. We’ve received numerous 5-star reviews from past clients who loved working with us. Clients value working with our team because we always take the time to understand their real estate goals and learn about what’s most important to them.

Faster

  • Get pre-approved in minutes
  • Closings on average in 20 days or less

Cheaper

  • 1% and 3% down options
  • Borrower Assistance Programs
  • Savings that average over $9,400 versus large banks and retail lenders

Easier

  • User-friendly technology allows you to track the status of your loan throughout the process

To Discuss Your Home Sale or Purchase, Call or Text Today and Start Packing!