By: Jerika P – i-Lead Realty Social Media Manager
Someone may have advised you to be pre-approved as soon as you let them know you are planning to buy a house—a friend, a coworker, or a relative. You may be confused as a prospective homebuyer, especially if you are a first-time buyer, as to why it is crucial to have your loan application approved before you even consider looking for a property. Here are four reasons for getting a mortgage pre-approval.
1. Helps you identify what you can only afford
You will be able to save a lot of time and effort when looking for a home if you have a pre-approved loan because you will already be aware of the price range of properties that you can only afford. Without a pre-approved loan, you risk becoming upset after finding the ideal home but not being able to afford it by the time you are approved.
2. Pre-approval enables you to move more quickly
Admit it—buying a house is difficult, especially if you’ve already located the perfect place but it’s now in the hands of another buyer since your finance took too long. That’s something you don’t want to happen. You will have the advantage when making an offer if you have a pre-approved mortgage in your possession.
3. It makes negotiating easier
Knowing your pricing range beforehand makes approaching sellers easier. Since they will be aware of your financial capabilities and the urgency with which you require the home, they will understand that you are a serious buyer, which will make it simpler for you to negotiate the terms and price of the property.
4. Gives you peace of mind
When you’re pre-approved, you will have peace of mind knowing that many of the paperwork details have already been taken care of, and you don’t have to worry about them anymore. It makes the settlement process much easier on your end.
We hopes this help you understand the why getting pre-approved is important. If you would like help finding your perfect home contact us.
What would Realtors tell home buyers right now? Find out on our YouTube here
Are we in a housing bubble? Here’s what some of the most successful realtors in the country say. Watch the video here