Chapter 1
Property Rights and Interests
Course: Texas Real Estate Exam Prep
Subject: Texas State Salesperson Exam Prep
Chapter: Financing Real Estate Of Texas Real Estate Salesperson Exam Prep
Pre-Qualification vs. Pre-Approval
Pre-Qualification:
- Informal assessment
- Based on verbal information
- No verification
- Not binding on lender
- Takes minutes
Pre-Approval:
- Formal application
- Credit report pulled
- Income/assets verified
- Conditional commitment from lender
- Takes days/weeks
- Gives buyer negotiating power
Texas Best Practice: Buyers should get pre-approved before house hunting
The Loan Process Timeline
- Pre-Approval (Before House Hunting)
- Application completed
- Credit checked
- Documents submitted
- Conditional approval issued
- Home Search and Contract
- Find property
- Write offer
- Contract executed
- Loan Application (Post-Contract)
- Full application to lender
- Appraisal ordered
- Title work ordered
- Processing
- Document verification
- Employment verification
- Asset verification
- Appraisal completed