You’ve decided to buy a home and have heard the advice about getting pre-approved for a mortgage. But should you? The answer is a resounding yes and here’s why.
Finances in order
The first reason is to see if your finances are in the right place to be approved for a mortgage before your dream house is on the line. The time and aggravation involved in searching for a home, putting in an offer and getting your hopes high about buying a home aren’t worth the disappointment of finding out you can’t get a mortgage after all of that. It’s better to find out now. If your credit is lacking you can wait to search and work on raising your credit score, save more money and be ready when you can look later.
Another reason is so that you know what price range you can realistically be looking. Again, if you aren’t pre approved, you may think you can afford a $500,000 home, only to find that you can only get approved for a $300,000 house. You basically have to start all over with a new search after getting your heart set on that more expensive dream home. After that, anything in a lower bracket will probably not measure up.
Having pre-approval for a mortgage also makes you a front runner when you do make an offer. If the sellers know that you already have your approval in hand and they won’t have to wait for you to go through that process or possibly withdraw your contract because you were turned down, they are more likely to accept your offer over one that doesn’t have pre approved buyers. Your offer will be stronger and you will most likely get the home.
So don’t be disappointed, be pre-approved. It will make your home search and buying your home much easier.
Listen to the advice. Get pre-approved!