Always Start Your Home Search With Pre-Approved Financing

Today’s real estate market moves swiftly. Often, buyers find they need to act quickly to avoid missing out on their perfect home. In today’s market, sellers are receiving multiple offers, allowing them the luxury of choosing an offer that’s to their exact liking. So, what can buyers do to increase their chances of enticing sellers with their offers?

The Benefits of Mortgage Pre-Approval

Pre-approved financing gives buyers a significant edge over those whose competing offers do not have a mortgage preapproval letter.  For home sellers, an offer that’s accompanied by a pre approval letter shows that the buyer is serious. The seller (and the seller’s agent) sees that the buyer has done his or her homework and is ready to purchase the home as quickly and as smoothly as possible. When faced with two similar offers, the offer backed by mortgage pre-approval is almost universally preferred. For buyers, beginning a home search by getting pre-approved for a mortgage provides even more benefits. Your pre-approval gives you a firm budget to work with, saving you from the heartache of falling in love with a home that’s outside your financial reach.
Additionally, having pre-approved financing sets you on track for a smoother home purchase. Pre-approved buyers close more quickly and are less likely to come up against unexpected delays or difficulties.  The process of buying a home is stressful and has many stages.  Taking these steps in the proper order is the best way to minimize your stress.

How Much House Can You Afford?

Buying a home doesn’t begin with looking at the area’s real estate listings. It begins, as with most things, with financing. With a mortgage pre-approval in hand, you’ll know what you can afford. Much of the waiting involved in choosing and obtaining a loan will be behind you as you search for your perfect home. You’ll still have a short wait when your actual loan goes through underwriting. However, as long as you don’t make any changes to your financial status, the loan application process is much shorter if you’ve already been pre-approved. Best of all? By being pre-approved when you make an offer on a home, you’ve given that offer its best chance to be accepted. In today’s fast-paced real estate market, that’s no small advantage.

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