Getting Pre-Approved & The Real Benefits
Many of our clients come to us with the impression that all they need is a pre-qualification letter to be considered a serious buyer when looking for their dream home with their real estate agent. Whether they heard this from a friend, colleague, or even their real estate agent, this is not the case.
In order to be better prepared to move through the mortgage process, you should actually get a pre-approval, which is much more involved than a pre-qualification and will give you a much better idea of what you can afford when it comes to your mortgage and finding the right house to purchase.
Getting a pre-approval has several benefits – from providing you with a better financial picture to giving you more bargaining power when you find a home you love.
Once you are pre-approved for a mortgage, you can start to plan for the future. You will have a pretty good idea as to what your monthly payments will be as well as what price range you should begin your search in. To get an idea of what you can afford, we’ve developed our True Affordability Calculator. It will do all the heavy lifting for you and help figure out how much you can truly afford so you can know what you should buy, not can buy.
A pre-approval, being the next best thing to an actual approval, will also give you bargaining power when it comes time to put in an offer on that perfect house you want to buy. A pre-approval gives your offer some heft and will help sellers take you more seriously.
Of course, even being denied a pre-approval has its benefits. If you are denied when you apply for a pre-approval, you will be able to review exactly why you didn’t get pre-approved. Then you will know what to work on to resolve those particular issues as soon as possible and get credit ready for when you apply for a mortgage again.
This is one of the reasons why it is so important to apply for a pre-approval so early on in the home buying process.
Give us a call for more information or to get started today!
Was this article helpful?
Mortgage and real estate trends are ever changing, which can make managing financial decisions difficult. ...Buying a HomeFinancial Tips