Whether you’re a pro when it comes to fixing and flipping properties or just getting started, there’s no doubt that you’re focused on the property itself. That’s the whole reason you’re in the business.
What many people don’t realize is that by thinking of only the property and not funding, you’re getting ahead of yourself and, therefore, digging a hole you might not be able to climb out of. It’s important to get pre-approved for a flip and fix loan before doing anything else, and this blog post explains the three reasons why.
There’s no reason not to
The truth of the matter is that pre-approval is fast, easy, and free. There’s a request form that you must fill out, but doing so only takes about two minutes. If you’re pre-approved, your rate quote should come back within 24 hours, then you have the budget for your fix and flip in front of you. It includes details such as the interest rate and lending limits that are needed to define your project.
Once you get pre-approved, you’ll be able to close on a property in a way you wouldn’t be able to had funding not been secured.
Certainty and peace of mind
Your credit score might be causing worry in the back of your mind when it comes to loans. You think you might run into roadblocks with your loan down the road, such as being handed a high interest rate or being flat-out denied. The reason that pre-approval is the proactive choice is because it gets those worries out of your mind by getting answers fast.
There’s no wondering when it comes to pre-approval, you either are or you aren’t. And if you aren’t, you have the knowledge to fix the problems and come back later, instead of being nearly settled on a flip property only to have it fall through.
You will also find that you don’t always need a high credit score to get past the pre-approval stage. Since you’re obtaining a house that you plan on flipping, the house acts as collateral in itself.
Pre-approval is your green light
After getting pre-approved with a rate and terms for fix and flip loans, the possibilities are endless. The market is competitive, with many flippers claiming properties as soon as they find them. You don’t want to be left behind because you’re missing the pre-approval, which is incentive to get it out of the way.
Those are three of the many reasons why pre-approval is a major benefit. When it comes right down to it, there are more reasons to get pre-approved than not to get pre-approved. So, the next question is, when will you send in your request?