4 Reasons Why it’s Important to Get Pre-Approved
If you’re thinking about buying a home, it’s important to first determine how much you qualify for. There is a very big difference between what your budget is and what the lender is willing to lend you. Before approving your mortgage, the lender will look at your income, down payment, job situation, credit bureau and liabilities. This pre-approval requires paperwork and can sometimes take a hot second to gather them.
Knowing your Purchasing Power
By first acquiring a pre-approval before you start house-hunting, you’ll avoid developing unrealistic expectations and falling in love with a property that’s beyond your means. Knowing what your pre-approved for will not only help narrow down your search criteria, it will also give your realtor assurance that they are showing you homes that you can confidently put in an offer to purchase.
Speeds up the Time Needed to Remove Financing Conditions
You found the perfect property, you have fallen in love and have made an offer subject to financing. Now it’s go time for your broker. If you have already gotten the pre-approval with us. We will already have all your income docs, have pulled credit and all we will (usually) need are the documents on the property. This streamlines the process and reduces the stress on everyone involved. No running around gathering docs in a hurry, you have already done that.
More Attractive Buyer
In todays real-estate climate, multi-offer situations seems to be happening more and more. When making an offer, you want your offer to look attractive. You may still want to protect yourself by adding in a financing condition but to give the seller some reassurance, you can add a letter of pre-approval from us here at the Mortgage Classroom. This actually happened to a client of mine recently selling their home. There were multiple offers and the buyer who ended up getting the house had included a letter of pre-approval. This gave my client the confidence that this sale would not be stopped due to financing.
Reduce Surprises
Talking to a mortgage broker before finding your perfect home can help ensure you’re not surprised when it’s time to make an offer. Getting your ducks in a row early will leave little room for unexpected surprises - such as a low credit score or a less than desirable debt-to-income ratio - when you find the home you've been looking for.
Ready to get Started?
Once you submit an application, we’ll review it and contact you right away with your pre-approval amount or if we need more information. Then, we’ll provide you with a pre-approval letter outlining the maximum amount you’re qualified to borrow.