Buying a home is an exciting milestone for anyone. For many of us, it’s the culmination of the American dream or a rite of passage for any adult.
Sometimes, though, our excitement for our achievement can get in the way of proper preparation. Before house-hunting seriously, we recommend getting pre-approved for a home loan or mortgage first.
Although this step is not as exciting as looking at different houses, doing so will help make the entire home buying experience much smoother and easier. Here are five reasons why.
Set Your House Buying Budget in Stone
A loan or mortgage pre-approval gives you a clearer picture of our budget. It lets us know exactly the maximum amount that the lender is willing to loan. It gives us a better estimate of future monthly payments, interest, and more.
All of this allows us to firmly set our budget for buying a home. In turn, this helps further narrow the price range of our search — which improves efficiency and saves us from frustration.
Shop Around to Find the Best Loan Option
Getting a loan pre-approval does not mean we can’t shop around. A pre-approval is still not final — it is still possible to choose another lender that offers better loan options.
A pre-approved loan letter gives us a better idea of how much we can get and more power negotiating with other lenders.
Enhance Buying Power and Weight of Offer
One of the best advantages a mortgage pre-approval gives us when buying a home is better buying power. It shows sellers and agents that we are serious about buying and adds weight to our offers.
In a highly competitive real estate market, agents and sellers will prioritize buyers with pre-approved loans as they are more likely to push through with the transaction.
Avoid Surprise Home Loan Rejections
Perhaps one of the most heartbreaking moments when buying a home is finding a house that fits your budget, falling in love with it, and later finding out your chosen lender rejected your loan application.
Going through the pre-approval process beforehand prevents the possibility of that unpleasant surprise. It lets us uncover any potential issues with our credit score, necessary documents, and other factors that may further impede the home buying process later on.
Speed Up the Closing Process
Applying for a loan pre-approval usually involves submitting our financial information, credit score ratings, job history, and other documents. We are also required to accomplish several forms to verify our information.
Since our chosen lender has already collected most of our information, the actual approval and closing process go by faster and smoother. There’s no need to rush to finish forms or request necessary financial records for submission.
All Pros, Almost No Cons
These are only five of the biggest benefits you stand to gain from getting pre-approved for a mortgage or loan. Learn more about the benefits of mortgage pre-approvals and the entire home buying process from an experienced Maryland Real Estate Agent on our team.
Call The Ashley M. Miller Team today or visit our website to get started on finding the perfect home.
