Are you looking for a home? If so, it is crucial that you get pre-approved for a mortgage. If you think getting pre-approved is not that important, I hope that by the time you finish reading this article, your view on this is different.
As an aside, before I outline the 5 main reasons why a mortgage pre-approval is so important, you need to know that getting pre-approved is different from getting pre-qualified.
A Mortgage Pre-Approval Will Save You Time!
By getting pre-approved for a mortgage, you will know exactly how much of a loan you will be able to get.
Once you have this information, you should share it with your realtor. This will allow your realtor to only take you to check out homes that you can actually afford!
It may seem obvious, but there is absolutely no sense in spending your valuable time viewing homes that are not even within your price range. slickcashloan
By getting pre-approved – you won’t be wasting your time!
Avoid Disappointment – Get a Mortgage Pre-Approval!
Getting pre-approved for a mortgage will also go a long way to help you avoid any disappointment and disillusionment.
Not only will you waste your time by checking out homes you cannot actually afford, but you may end up falling in love with one of them.
Can you imagine how disappointing it would be if you put an offer in on the home of your dreams, but then found out that your loan has been denied?
That’s why you need to get pre-approved – so you are 100% sure of what you can afford – before you shop for a home!
A Mortgage Pre-Approval Increases Your Negotiating Power
A mortgage loan pre-approval will benefit you by bettering your bargaining position and possibly save you a bundle of money.
In the real estate market, many of the best properties often attract multiple offers. This is where you gain a competing advantage.
How? Well, if you approach a seller with a pre-approval, they are more likely to accept your offer – even if that offer is slightly less than the others.
Why? Because your offer will not be conditional on financing (you already are pre-approved), the seller can have peace of mind that their home is sold.
Unless any competing offers are backed up by pre-approvals as well, you will be in a better negotiating position, and could save a bundle of cash!