The decision to purchase or refinance a home can be an exciting but sometimes confusing undertaking. When beginning your search for your dream home, there are a number of factors that you will want to consider. Whether you are a first time buyer or already own a home and want to move up, getting pre-approved for your mortgage is a necessary and time saving step. Here are some of the benefits of getting pre-approved!
Know Your Budget
Becoming pre-approved means that you will have a clear picture of the credit you have available to you to purchase your new home, as well as your price range. This will prevent you from spending time looking at homes that may be out of your price range and perhaps getting attached to a home that you cannot beginning your search for your dream home, there are a number of factors that you will afford. It means that if you find the home that is right for you, it can more easily become yours!
Getting pre-approved for your mortgage means that you can act more quickly once you find the home that is right for you. The process of getting the mortgage approved is generally the longest and most complicated process in any home purchase. It requires verification of your income and employment, an evaluation of your credit, as well as the completion of a loan application. Having this step completed can save weeks of time in the closing process. Pre-approval also means that you have an advantage should a bidding war begin. The seller can be confident that you can afford the bid you are making and that you can move quickly to finalize the sale.
Overall, there are a number of benefits to getting pre-approved for your mortgage before beginning the search for your new home. Most importantly, it can give you peace of mind in knowing that you are ready and able to make the commitment to homeownership, and that you are not wasting your time in looking at properties that you may not be able to afford.