If you are planning to start the process of looking for a new home in the near future, you will want to take the time to get pre-approved for a mortgage loan. While no rule says you must be pre-approved before you being viewing homes, this pre-approval can prove very beneficial. Keep reading below to learn more about three of the benefits that a mortgage pre-approval has to offer.
Benefit #1: Don't Waste Time Shopping Outside Of Your Price Range
The last thing you want is to find a home that you love, put a bid in to purchase this home, and be informed that you are not able to qualify for enough financing to ultimately purchase this home. Getting pre-approved for a mortgage will allow you to determine exactly what your price range is based on how much the bank is willing to loan you. This will ensure that you do not waste any time looking at homes that you may not be able to buy. Being able to provide your real estate agent with an exact price range will also help them to select the best properties for you to view.
Benefit #2: Ensure That Any Bid You Make Is Taken Seriously
The real estate market can be rather competitive. This is especially true right now due to a minimal supply of available homes for sale. Consequently, you will need to ensure that you are presenting yourself as a serious buyer if you want a seller to accept your bid. Having a mortgage pre-approval letter in hand is one way to ensure your bid is taken seriously. This is because sellers don't want to risk having a buyer who needs to pull out at the last minute due to a lack of financing. A pre-approval letter demonstrates to the seller that you can secure the mortgage loan necessary to complete the purchase. This can give you an edge over other buyers who may be interested in the property.
Benefit #3: Enjoy An Easier Loan Process Once You Find A Home
Once you find the home you want to purchase, you will likely want to complete the purchase and move into your new home as quickly as possible. Getting pre-approved for a mortgage can help to make this dream a reality. This is because already being pre-approved through a specific lender can help to streamline the loan process once you are ready to finalize your mortgage. This can allow you to close on your purchase in a much shorter amount of time.
For more information on a mortgage pre-approval, contact a professional near you.Share