You’ve decided to make the biggest investment of your life and buy a house.
Written by Northwest Mortgage
Published on Tue, May 11, 2021, Last Updated on Tue, May 11, 2021
Chances are, you’ll need a mortgage to pay for it, unless you’ve won the lotto.
For many people, the process of getting a mortgage comes after house hunting. However, experienced buyers know that getting a mortgage pre-approval can be a lifesaver. Wondering how? Read on to learn about some of the benefits of a mortgage pre-approval:
· It Allows You to Work with the Best Agent
Those who have been through the home buying process before know that many real estate agents do not work with potential buyers who aren’t pre-approved for a mortgage. It may seem rude, but if you look at it from their perspective, it’s justified. Real estate agents invest plenty of time and effort into helping people find the right home. And it only makes sense that they want to be reassured that people they are working for are serious buyers and can actually afford to buy.
· It Helps Narrow the Search
Finding the right home is often an exhaustive process because there are many things to consider, from location to size to the features. However, the factor that ultimately controls the home buying decision is the budget.
When you get pre-approved, you know how much money you can get from the lender. In other words, you know exactly what your budget for the house is, so you can narrow your search to the price range that works for you.
· It Gives You a Competitive Edge over Other (Non-Approved) Buyers
Getting a mortgage pre-approval will give you an advantage over other buyers who do not have it.
Sellers generally prefer to close deals with people who have their mortgage sorted out already. This is because it assures them that the buyer won’t back out later in the process due to a lack of finances. By having the pre-approval, you are a safer option than someone without one, sort of like a guarantee that says you’re good for the money.
· Pre-Approval Allows You to Negotiate (More)
Along with an advantage over other buyers, mortgage pre-approval also increases your chances of securing a good deal on the house.
When you know that the seller is willing to close the deal with you, you get an upper-hand in the negotiation process. In other words, your chances of getting the seller to accept your offer increase, even if it’s slightly lower than other non-approved buyers.
· You Will Be Able to Close Quickly
It can take longer to close on home without a pre-approval. Why is this? Getting a mortgage approval takes time, but by being pre-approved, you skip that step entirely, which ultimately saves you time in the long-run.
The Sum Up
Searching for a house without getting pre-approved for a mortgage is like a window shopping. You’re just out there in the market to see the options without an intent to buy. If you really want to buy a house, get pre-approved to not only establish yourself as a serious buyer but also to attain the benefits listed above.