One of the first steps in the home-buying process is to get pre-approved for a mortgage. Before hiring a real estate agent or looking for properties, you should do this.
Pre-approval is the process of presenting mortgage lenders with your financial information and receiving a loan offer that shows your expected interest rate and the amount you can borrow. Pre-approval does not ensure you will get a loan. However, it does imply that you will get one at the agreed-upon terms as long as your financial situation remains stable and the home you purchase is valuable enough to serve as collateral.
Although pre-approval can take time and may appear to be a burden, you will gain these three critical benefits if you go through the procedure.
1. You Will Not Waste Time Looking For Homes That Are Out Of Your Price Range
A mortgage pre-approval establishes an upper limit on the amount you can borrow. While you may not wish to borrow the maximum amount permitted by the credit union/bank, you cannot borrow more than they approve.
You could waste a lot of time looking at homes out of your price range if you don’t know your maximum limit. This not only means you could save hours on an aimless search but also make it more challenging to discover a property you like in your price range since you may get your heart set on qualities that you might not be able to afford.
2. You Have A Better Chance Of Getting An Offer Approved
Sellers usually ask for pre-approval confirmation when you identify a home you want to buy and make an offer. This is because it is in their best interests for you to be authorized for the loan required to complete the transaction.
Because a pre-approval takes time and the market can be competitive, you want to avoid locating a house you love just to start looking for a credit union/bank to provide you with a loan. This could mean missing out on an offer because you needed to receive your pre-approval letter in time.
3. It Will Be Quicker To Close On A Property
Once you find the ideal home, you will likely want to move in immediately. And because getting a mortgage approval and going through the closing process can take a lot of time, you may find that your plans get pushed back without a pre-approval.
If you’ve already found a lender and given them your financial information, you won’t have to start from scratch; you’ll just have to go through the final approval process. This can expedite and simplify the process. This will also benefit the seller, and could result in a quicker closing that could help you secure financing.
A pre-approval makes buying a home go faster and makes it more likely that your offer will be accepted. Therefore, there is no reason not to speak with a lender and get pre-approved before beginning your property search.
If you are looking for a mortgage Pre-Approval online, Heritage Financial Credit Union is the right place to visit. They offer you great mortgage pre-approval options online while understanding the ins and outs of the process.