Importance of Pre-approval when buying a home
If buying a home is part of your plans this year, then one of the first steps on this journey is ensuring that you get pre-approved. Getting a mortgage pre-approved can be a game changer for you.
What Is Pre-Approval?
A pre-approval is a preliminary evaluation of a potential borrower by a lender to determine whether they can be given a pre-qualification offer.
As part of the pre-approval process, a lender will look at your finances to determine what they would be willing to loan you. From there, your lender will give you a pre-approval letter to help you understand your true price range and how much money you can borrow. That can make it easier when you set out to search for homes because you’ll know your overall numbers. And with mortgage rates rising and impacting affordability, a solid understanding of your numbers is even more important.
Benefits of getting pre-approved
You Are a More Powerful Buyer
Sellers will see you as a serious buyer when you have the backing of a lender. Pre-approval means a lender has looked at your financial background and determined how much home you can afford.
Save Yourself Some Time
Getting pre-approved can also save you valuable time by identifying how much you can afford, so you can target your home search to your price level. This also allows you to focus on the features of the home rather than worrying about the price tag.
Better Bargaining Power
With a pre-approval letter in hand, you will likely have more negotiating power because sellers and real estate agents know that you have already talked to a lender, and you mean business.
Talking to a lender before finding your perfect home can help ensure you’re not surprised when it’s time to make an offer. Getting your ducks in a row early will leave little room for unexpected surprises - such as a low credit score or a less than desirable debt-to-income ratio - when you find the home you've been looking for.
Enjoy Shorter Closing Periods
A pre-approval can help to speed up the closing process, since much of your financial information is already collected and in the lender’s system.
Getting pre-approved for a mortgage is critical. It helps you better understand what you can borrow and shows sellers you’re serious about purchasing their home. Connect with a local real estate professional and a trusted lender so you have the tools you need to succeed as a homebuyer in today’s market. We are proud to let you know that we can offer both these services to you, If you are looking for a house to buy and would like to get pre-approved get in touch with us