Let’s say you want to get some ice cream. Which would you choose? Someone who said they had some for sale but had no ice cream shop? Or, someone with an ice cream shop ready to sell you a sweet treat?
The answer is obvious. You choose the one who has the ice cream ready to sell. Getting mortgage pre-approval is a lot like that.
The answer is obvious. You choose the one who has the ice cream ready to sell. Getting mortgage pre-approval is a lot like that.
A seller wants proof that you are a serious buyer. That’s why when you submit a contract, including proof of mortgage pre-approval, it places you at a competitive advantage, especially in bidding situations.
While mortgage pre-approval is a critical first step for buyers, there are 5 more great reasons to get mortgage pre-approval before you house shop.
While mortgage pre-approval is a critical first step for buyers, there are 5 more great reasons to get mortgage pre-approval before you house shop.
Mortgage Pre-Approval: Know Your Budget
When you get pre-approval from your lender, you know your maximum loan amount and price range. There’s no guesswork.
This helps you to focus your home search, preventing you from wasting time looking at houses you can’t afford.
This helps you to focus your home search, preventing you from wasting time looking at houses you can’t afford.
Mortgage Pre-Approval: Identifies Issues Early
The pre-approval process identifies any potential issues early with your finances or your credit. This gives you time to address and fix those problem before you house hunt.
Being proactive saves you time once you’ve signed a contract. There won’t be any contractual delays on your part while you and your lender work through the financial issues.
Being proactive saves you time once you’ve signed a contract. There won’t be any contractual delays on your part while you and your lender work through the financial issues.
Mortgage Pre-Approval: Strengthens Your Negotiation Position
If you’ve already been pre-approved for a mortgage loan, it strengthens your negotiation position, allowing you to negotiate more confidently on price, closing dates, and so on.
Pre-approval also lets the seller know that you are a serious buyer. So they take your offer more seriously.
Pre-approval also lets the seller know that you are a serious buyer. So they take your offer more seriously.
Mortgage Pre-Approval: Speedier Process
Mortgage pre-approval speeds up the purchase process once you’ve found the home you want to buy.
The property can proceed straight to final loan approval, skipping the pre-approval step.
The property can proceed straight to final loan approval, skipping the pre-approval step.
Mortgage Pre-Approval: Lock In Current Interest Rate
Interest rates fluctuate frequently. Once you’re pre-approved for your loan, the rate is usually locked in for 60-90 days. This protects you from having to pay a higher rate before you reach closing.
Getting mortgage pre-approval sets you up for success during your home search and purchase process.
Taking this critical step will put you ahead of the game and help to make the real estate homebuying process smoother!
When you’re ready to close on your new home, turn to the pros at Lilly Title & Settlement. We’re a woman-owned company in Staunton, VA, specializing in title insurance and settlements. We’re obsessed with legal details, so we close on time! Learn more about us here.
Getting mortgage pre-approval sets you up for success during your home search and purchase process.
Taking this critical step will put you ahead of the game and help to make the real estate homebuying process smoother!
When you’re ready to close on your new home, turn to the pros at Lilly Title & Settlement. We’re a woman-owned company in Staunton, VA, specializing in title insurance and settlements. We’re obsessed with legal details, so we close on time! Learn more about us here.
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