In the world of real estate, being pre-approved for a mortgage loan can make the process of buying a home much smoother. It’s challenging to know all the advantages of pre-approval, but here are five reasons to get pre-approved before buying a home.
You Will Know How Much You Can Afford
By getting pre-approved instead of just qualifying for a loan, you will know exactly how much you can afford. Knowing this amount will help you find a house within your budget and with manageable payments.
A Pre-Approval Could Speed Your Purchase
Being pre-approved means that you may have an upper hand over buyers who have not taken that step. When a homeowner is selling their home, they will be more comfortable with buyers that have already qualified for the asking price. Pre-approval is something to consider in most situations, as many times multiple buyers will look to purchase the house.
Agents Might Not Work With You Without a Pre-Approval
An agent spends many hours working with buyers and wants to know that the buyer can afford what they are being shown. A pre-approval will help both parties because the agent will know exactly how much you can afford, and they can show you houses in that range.
You Have the Ability to Shop Around
Just because one lender gave you a pre-approval doesn’t mean you need to go with that quote. You can and should apply for pre-approval with other lenders to get the best rate. However, keep in mind while applying, do it in a short period of time to minimize the impact to your credit score.
Pre-Approval Makes the Closing Go Faster
Applying for pre-approval means you will have completed most of the mortgage paperwork prior to closing. This means that much of the closing information can be transferred to the settlement documents, and your time at the settlement table can go smoother. A smooth closing is something that everyone wants when they buy a home. Consider these tips and make the right choice for you before you look at new homes to purchase. Looking for a Realtor® in Maryland? Contact Vsells & Associates today, and keep checking our blog for more real estate tips.