Pre-Approval - The Way to Get on Top of the Game
To say the market is hot is an understatement. Whether you are buying your first home or have entered a new season in life which requires a house change, purchasing a home should be a very exciting time – it can also bring on undue stress and anxiety. After all, you are making the biggest purchase of your life! One of the most significant ways to minimize this stress is to get pre-approved for your mortgage before you shop homes with your real estate agent.
Having a lender review all of your pertinent financial documents with you should take place before you start the house hunting process. This way, you will know what the maximum mortgage amount you qualify for will be. You will also know what estimated payments are expected and you will be able to lock in your interest rate for a specific period.
It is important to note that the pre-approval process does not guarantee that you will be approved for a mortgage. Changes in your employment or debt-to-income ratio could affect your ability to move from pre-approved to approved.
In this hot market, you want to be at the top of the buyer leaderboard.
You need to know how much house you can afford.
Buying a house is a significant investment – one of both time and money. As we have seen in recent years, what comes on the market does not last. As a buyer, it may not only be frustrating but also upsetting to fall in love with a home only to lose out because you could not afford it or you were simply outbid by a confident and qualified buyer.
You will need to narrow down exactly what you will be looking for in your home.
Knowing how much mortgage you can afford will considerably help narrow down your search for a house. Instead of getting caught up in houses outside of your price range, you will set a realistic “wants and needs” list so as not to set yourself up for disappointment.
You will need the edge over another buyer.
In today’s hot market, you will need to make a solid offer – you can make this solid offer knowing that you’ve been pre-approved for a mortgage. In addition, knowing that homes are often selling for above asking allows you, as a pre-approved buyer, to be prepared in making an above asking offer, as well. In hot and competitive times, your preparedness will be what gives you the edge over another buyer.
You need to sell yourself.
The prospective buyer who can make a financially sound offer will always win. Period. Getting pre-approved makes you that buyer.
You need to shorten the closing period.
Financing is often the hurdle between “For Sale” and “Sold” to some “dream buyers”. If you have all of your ducks lined up before you even start the house hunting process, you will greatly reduce the waiting time for you to move into your new home.
Take the stress out of purchasing your first or next home and get pre-approved. This will make your experience more of an enjoyable one.
Come work with a qualified and knowledgeable broker so that you can have an enjoyable and stress-free home buying experience.