Why is it important to be pre-approved for a mortgage?
It gives you an estimate of of how much you are working with.
Buying a home is a major investment, and most of us aren’t paying for the whole thing up front in cash. When you get a mortgage pre-approval, you’re able to set your budgetary limits and make sure that any home you’re looking at is a home that you will be able to finance.
Decide what kind of mortgage you can afford.
Generally, you want to look for homes valued between two and three times your gross income, but a financing professional can help determine the size of loan for which you’ll qualify. Find out what kind of0 mortgage (30-year or 15-year? Fixed or adjustable rate?) is best for you.
It makes you an attractive buyer.
Potential preapproved buyers are very attractive buyers for home sellers. Because you’ve already been pre-approved, the closing timeline is much shorter than a prospective buyer who will still need to go0 through the process. If there are two buyers making an asking price offer on a home and only one has a mortgage pre-approval, who do you think the seller is going to be more likely to go with?
It Gives You More Room to Negotiate.
In addition to making you a more attractive buyer, a mortgage pre-approval also lends you some flexibility in terms of bargaining and negotiations. That’s because sellers who know that a buyer is already qualified for the offer amount may be more likely to make some compromises if it means the sale is a sure thing.
Find Your Perfect Home with Les Walden Real Estate!
To help you with all your real estate needs, the Les Walden Real Estate Team has assembled a team of the best professionals in the industry. If you are looking for the perfect home or want to sell your home, allow us to help guide you through the process. Our goal is to not only help you accomplish your real estate goals but do it while having fun and becoming friends. We have had the pleasure of helping over 3000 families make great real estate decisions in our part of the world and made just as many new friends.