Benefits Of Getting PreApproved Before Shopping For A Home

Dated: 03/06/2017

Views: 386

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Have you ever asked yourself, "Rent is getting too expensive; I might as well have a mortgage"? Usually, if you find you are asking yourself this, it is a good indication that you are ready to begin the process of becoming a homeowner, especially if you are scrolling through websites to see what homes are available. For all first-time home buyers, you will want to begin researching programs that are available to you. In homebuyer education classes, you will learn that acquiring a mortgage pre-approval letter from a lender is one of the best tools you can have before stepping into a real estate office. Here are some of the benefits:

You are a serious buyer.
Presenting a pre-approval letter will let everyone know that you are determined to buy a home now and not something you are merely considering. This also puts you in the positive frame of mind that your purchase will happen.
Evidence provided by a lender of your ability to pay a mortgage.
When you give your agent a copy of your pre-approval letter, you are giving them a compressed version of what you are capable of paying. To receive a pre-approval letter, supply your lender with your credit score, bank statements, bill payment history, and other financial documents.

You know your budget.
To save yourself a lot of heartache and frustration, you will want to know how much house you can afford. When you have your pre-approval letter, you will see your current debt-to-income ratio and a consultation from your lender on what is within your means. The last thing you will want to feel is the disappointment from realizing the perfect house you spent weeks finding is outside your budget.
It shows you are organized.
This brings us back to providing your lender with all the financial documents required to get a pre-approved mortgage loan. After gathering the original documents, it will be a simpler process to update your information when you are prepared to write an offer on a home and apply for an official loan.
Home sellers are looking for serious buyers.
Sellers who have their home listed on the market are looking for serious buyers. They want the added security knowing that buyers placing an offer are able to afford to purchase the home without a rejected transaction when a loan cannot be secured. The best way to show you can afford the purchase is including your pre-approval letter with your offer. If the house is popular with multiple offers, you just may have given yourself an advantage over those who do not have a pre-approval letter.
Pre-approval decreases time to close escrow.
Once you find a home and enter into a purchasing contract, contingencies will be put into place pending your approved loan. After going through the process of gathering the necessary documents to receive your pre-approval, the process becomes smoother and swifter to close escrow.
One less thing to stress about.
Buying a home is an exciting time, but it can be equally stressful. If you take the steps to prepare yourself by getting pre-approved for a loan, you will be thankful in the end and have more joy in the experience of buying your home.
When you are ready to buy your home, I am here to help.
A hui hou aku nō, mālama pono.

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