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Why Getting Pre-Approved is Your Best Move

Why Getting Pre-Approved is Your Best Move

Spring is right around the corner, which means the housing market is about to ramp up. If you’re searching for a home, it’s an exciting time to get out and start looking at what’s available and checking out all the open houses. However, an important step to take before getting you start your search is to get your financing pre-approved. There have been some significant changes to mortgage regulations lately, and with housing prices all over the map, you’ll want the peace of mind knowing your financing is ready to go. Pre-approval involves going to a lender or mortgage broker and applying for a mortgage before you start putting offers in on homes. This process doesn’t happen overnight, so it’s good to get all the paperwork out of the way early. During the pre-approval process, the lender will look at your income, credit history and credit score, as well as discuss your down payment options before letting you know if you’re approved, and if so, for what amount. Afterwards, you’ll be in a position to house hunt to your heart’s content if approved, or if not, explore ways to boost your credit rating or down payment so you can re-apply in the future. Here are some key reasons why getting pre-approved is a crucial step you don’t want to miss.

Knowing your price range

Imagine the disappointment of finding your perfect home and getting excited about the prospect of moving in, only to find out that you’re not able to get the financing for it. By getting pre-approved, you’ll have a solid understanding of your price range, which will not only allow you to narrow your focus to the homes that are right for you, it will also help you avoid the heartbreak of falling in love with a house you can’t have.

Understanding the complex world of real estate

There’s a lot involved with purchasing a home and managing a mortgage. Being informed about real estate, mortgage payments, interest rates, and the myriad of other details will help reduce a lot of stress and worry, particularly for first-time home buyers. By arranging financing with your lender or mortgage broker before searching for a home, you’ll be in a much better position to discuss your buying options and negotiate if needed. Further, most real-estate agents find it easier to work with clients who are pre-approved, as they know that their efforts to help you find that home won’t end up in a dead-end if your financing falls through.

Having an advantage to compete

With the real-estate market so unpredictable, you never know when you might have to contend with some serious competition when putting an offer in on a house. In cases where there’s a lot of interest or even a bidding war on a property, having your financing pre-approved can put you at an advantage. It makes a good impression with the sellers and real estate agent, as it differentiates you from the other buyers who may not be able to come through with financing. If they know that they can close the deal quickly and efficiently, you’ll be put at the top of the list, potentially allowing you to secure that desired property.

Avoiding unexpected surprises

We all like surprises from time to time, but not when it comes to our money or investments. If you’ve spent your time planning and searching for a home, the last thing you want is to discover, especially at the last minute, that your financing has fallen through. By taking the steps needed to secure your financing before making that offer, you’ll help alleviate those financing surprises. The mortgage world can be complicated enough, so any steps which help make the process run more smoothly are worth it.

Getting your financing pre-approved before you start your real estate search really is the best thing you can do to alleviate a lot of headaches and heartaches. Make an appointment today with a lender or mortgage broker to talk about getting pre-approved. As a qualified mortgage broker, it’s my job to walk you through the mortgage application steps, and work with you to find the best mortgage. Real estate and home purchases can be overwhelming and confusing, so don’t hesitate to contact me before your home hunting begins. Give me a call at 705-315-0516 and I’ll help you get the peace of mind and the home you deserve.

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