Taking the extra time and effort to go through the mortgage pre-approval process may seem like an unnecessary step. However, it could be the difference maker in whether or not the agent or seller of your future home actually sees you as a legitimate buyer. Getting your mortgage pre-approved basically means that you as the buyer have made the seller confident enough that you will do what you say you are going to do. This in turn can be extremely helpful in securing the home of your dreams.
Be Taken Seriously
The central reason a pre-approval is so beneficial is because it essentially adds credibility to your home-buyer resume and allows you to actually be taken seriously. How exactly is this accomplished? By establishing the proper down payment upfront and then ensuring that you have the necessary income level to continue making the expected payments moving forward.
Following pre-approval, the home you are purchasing must have an appraisal that is higher or equivalent to the price that the home is being purchased for. This way the lender can be positive that there is enough collateral offered in order to meet the loan amount. You will be treated with more respect in terms of negotiations and will be much more likely to close the deal by having a pre-approval.
Boost Your Confidence
Not only does getting pre-approved give confidence to the agent or seller, it also gives confidence to you as the buyer! Pre-approval gives you a much better idea of the loans that you can afford, which then allows you to start searching for homes within your budget sooner. Otherwise, you may get attached to homes and be disappointed that homes you previously believed to be in your price range are in actuality too expensive.
With a pre-approval, you will have all the confidence you need when you begin looking at homes and know which ones are within your price range and which ones are not. You’ll know exactly what price range you’re looking for and start your search with confidence from the beginning instead of second guessing what could or couldn’t work for your personally estimated budget.
Be One Step Ahead
The best part about a pre-approval is you’re already one step ahead of all other potential buyers out there! Competition can get intense in the world of real estate, so you should try your hardest to get a leg up in any way possible. Already having a pre-approval letter guaranteeing you won’t be denied a mortgage if you were to be sold a home is very appealing to both sellers and their agents.
Those who are selling the home you’re interested in are much more likely to choose those with a pre-approval letter over those without one. If you have a decent credit score and can provide the appropriate income documentation and forms of identification, then we strongly recommend you get your mortgage pre-approved early into your home-buying experience. That way, when you’re ready to make an offer there is nothing standing in your way!
Not sure how to get started with the pre-approval process? We’re here to help. Contact us today and we’d be happy to connect you to our trusted circle of lenders and help navigate you through the process.