Once you decide to shop for a new home the process can unfold quickly. And for that reason, you’ll want to secure a mortgage pre-approval as soon as possible.
Not only does this give you a better idea of what you can afford and the impact on your budget, but it also helps when making an offer on a home (especially if you’re in a bidding war).
While it’s natural to spend the majority of your time on the home search process, you must also consider the fact that you can’t do anything without a mortgage.
Here are five of the top benefits of securing a mortgage pre-approval:
1. A Step in the Right Direction
As such a big decision in your life, it’s often difficult to take the first step.
With a mortgage pre-approval, you don’t commit to anything. You simply take the step of determining how much of a home you can afford.
2. Know What You Can Afford
As noted above, a mortgage pre-approval will tell you how much home you can afford. With that information, you can then target homes that fall into your budget range.
If you don’t know what you qualify for, it’s possible you could waste time shopping for homes that you can’t afford.
3. Give the Seller Confidence You’ll Close
When you put an offer down on a home, you want to do everything you can to give the seller confidence that you’ll close. A mortgage pre-approval goes a long way in making that happen.
If other buyers don’t have a mortgage pre-approval, you’re one step ahead — and that’s exactly where you want to be.
4. Find a Lender You Trust
As you move through the mortgage pre-approval process, you may find that you don’t particularly care for the lender. Should that happen, you can quickly change directions with the goal of finding a reputable lender that more closely aligns with your personality and goals.
5. Save Time
It takes time to buy a home. Anything you can do to save yourself time will also save you stress.
A mortgage pre-approval is one less thing you have to worry about once you have a home under contract. You don’t have to sweat it out, worrying that you won’t receive a loan for the amount that you need.
Now that you understand some of the benefits of securing a mortgage pre-approval, there’s only one thing left to do: contact a lender and move through the process.
Once you have a pre-approval letter in hand, it’s much easier to search for your new home with a clear mind. Happy house hunting!