Everything You Need to Know About Pre-Approvals

pre-approval for mortgage

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Getting pre-approved for your mortgage is a critical part of the house-buying process because it lets you know what sort of mortgage you can expect to receive from your lender. Also, if you have pre-approval from your lender, then sellers are much more likely to take your offer seriously. 

Why Pre-Approvals are so Important

The following points are the 5 main reasons you should always get a pre-approval before starting to really look for your next home

Skipping the pre-approval can cost you time

Waiting to get pre-approved can make you waste hours of your house hunting search. Here’s an example. You may have thoroughly analyzed your finances, and come up with a price range of homes that you can afford. Staying within that range, you go out and look at several houses. You find one that you love and apply for your loan. But then, you find out that you’re not approved for the amount you need. You miss out on a house you love. And you spent all those hours looking at homes you couldn’t afford.

You may be approved for more than you think

Likewise, you may find out that you’re approved for more than you think. This means that you can expand your home search. Your dream home might be one that you didn’t think you could afford. If you look at houses under $700,000 but can afford $750,000, there may be a gem that you haven’t seen. It’s best to avoid missing out on the ideal home and to get pre-approved before you start searching.

Pre-approval can give you a competitive edge

If you’re looking for a home in an area with a hot market, you may have some competition. Having pre-approval gives you an edge over the competition. It lets the seller know that you’re serious about buying a home and that you can actually afford it. And, it allows you to put in an offer quicker than they can. Pre-approval can be the edge that you need to get the home you love.

You need a thorough pre-approval

Not all pre-approvals are created equal. If you relied on an online form for your pre-approval, it might not be accurate. Only a thorough pre-approval can give you an accurate idea of how much you will be approved for. You should hand in pay stubs, list financial obligations, and submit to a credit check. Only then can you be sure that the process is as accurate as possible

Your pre-approval can speed up your purchase

Once you’ve decided to buy a home, you don’t want anything to slow it down. Not being pre-approved could be an obstacle in the way of your home purchase. To make sure everything goes smoothly, get pre-approved. This can save you from a major headache and get you into your new home quicker.

Getting pre-approved has many benefits. Don’t hesitate to speak with a lender about getting pre-approved. If you have any questions about the process, contact us. We’re happy to recommend people to help you get pre-approved. Then, we can help you find some great homes that are in your price range. You may be closer to finding your dream home than you think!

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