Whether you’re a first-time homebuyer or have been down that road a time or two, getting pre-approved by your lender offers many benefits when the time comes for your Realtor to present an offer on your dream home. Here are just a few things to consider:
- While pulling your credit history and score, your lender may discover something that is impacting your ability to purchase. Knowing this in advance of searching for a home gives you a chance to correct any negatives.
- Your income, debt, available cash, etc. are all taken into account in determining how much home you can buy. While you may not want to borrow up to your approved limit, knowing what you qualify for will help you to search within realistic boundaries, saving you time and possible disappointment. There’s nothing worse than finding the perfect home only to discover that you may not qualify for the mortgage you need.
- In any market, but even more so in markets where the inventory is low and buyers abound, sellers want to feel secure in accepting an offer on their home. Presenting a preapproval letter along with your offer makes you a more attractive buyer and builds confidence that your financing will not be an issue.
We recommend that you put Preapproval at the top of your “to do” list! It’s a free, simple first step that will put you on the path to a smoother home buying experience.