Should you find yourself in the market for a new home, there’s an important question to answer: do you require a mortgage or will you be paying with cash?
Like most people, you’re probably interested in a mortgage to finance the cost of the home.
While that’s a big commitment, there are plenty of lenders that are willing to help you through the process.
It’s not required, but there are many reasons why you should obtain a pre-approval before you begin your search for a new home. Consider the following:
1. To Learn What You Can Afford
It’s one thing to assume that you know how much of a mortgage you can afford. It’s another thing entirely to receive a letter from your mortgage company that outlines this for you.
In other words, they’ll tell you how much you qualify to borrow, which allows you to set better parameters for your search.
2. A Big Step Forward
You have big dreams of owning a home, but before you can do that you need to get everything in line in regards to your finances.
Getting a mortgage pre-approval is a big step forward, as it allows you to answer questions such as:
- Do you qualify for a mortgage?
- How much money are you able to borrow?
- How much money do you need to put down to purchase the home of your dreams?
It doesn’t take a lot of time or effort to obtain a mortgage pre-approval letter. All you have to do is reach out to a lender or broker, explain your situation, and let them guide you through the process from start to finish.
3. It Shows That You Qualify to Buy a Home
In addition to proving this to yourself, a mortgage pre-approval also shows the seller that you have the financial means to purchase their home. This gives them confidence that you’re not just making an offer, but that you can close the deal should the time come.
4. It Saves You Time
Even though it takes time to obtain a mortgage pre-approval, it’ll actually save you time over the long run.
Once you find a home that you want to put an offer on, you can hash out the details with the seller. And from there, if you meet on terms, you can contact the lender and turn your pre-approval into the real thing.
There’s nothing challenging about requesting a pre-approval from a mortgage lender.
Find the right one, tell them what you want, and let them show you the ropes. As long as you provide the information they need in a timely manner, you’ll soon be on your way.
Did you obtain a mortgage pre-approval before buying your home? Did it benefit you?