Getting preapproved for a mortgage is an important part of the home buying process. While technically not required before you begin your home search, there are some key advantages to getting preapproval from a lender before you get too deep into the process.
Here are some of the main reasons why to consider getting preapproved for a mortgage:
Cost is one of the major factors you’ll be dealing with in finding a new home. A house is a significant investment and one of the biggest purchases you’re likely to make, so it’s crucial to understand your financial situation clearly early on.
Mortgage lenders will examine your finances, using things like credit history, investment account statements and debt-to-income ratio.
With this careful analysis of your financial situation, a mortgage preapproval can help you determine how much you can afford to spend on a house before you start looking. It will help you estimate how much of a down payment you can offer and how high an interest rate you can comfortably afford while paying back your mortgage.
The real estate market is constantly changing, both across the country and across your local area. Economic shifts can make a huge difference in the availability of homes for sale and their prices. It can also make a difference in how much competition you’ll have for the same property.
Getting mortgage preapproval will give you an advantage over other potential buyers because it will communicate to sellers that you’re financially qualified and less of a risk.
As long as you don’t make any major changes that could affect your financial status, having mortgage preapproval shows you have the financing to back you up. Sellers may be more likely to choose you over another buyer if they have the reassurance of your mortgage preapproval letter.
While the mortgage preapproval process itself might seem daunting and complicated, the benefits can certainly outweigh the inconvenience. Keep these advantages in mind when considering whether to get preapproved for a mortgage.
I've been listing and selling in Wilmington and surrounding areas since 1987 and have been affiliated with Fudge Properties since 2007. I have a strong reputation for outstanding quality of both work and interpersonal relationships, knowing what needs to be done and how to elicit cooperation for getting it done. I'm also proficient and knowledgeable about the Mass Housing program guidelines, successfully completing numerous housing lotteries for first time home buyers, over 55 buyers and renters. Whether you're buying or selling, I can help you get the best deal. Just looking? That's OK. Use my website all you like, but you'll have to create a free account to unlock all the best search features. Once you sign up, you'll be able to save listings, save your search criteria, get automated email updates for new homes matching your saved search criteria, and more. Good luck on your house hunt! I hope to hear from you soon.
