Should I get pre-approved for a mortgage if I’m planning on buying a home? Absolutely. Everyone who wishes to purchase a new house should go through the pre-approval process prior to beginning their search. A pre-approval is when a lender conducts a detailed analysis of your financial background and issues you an estimate of interest rates and other important documentation based on their review.
Getting pre-approved for a loan will always be an integral part of house hunting for numerous reasons, including how much it can accelerate the process. To learn more about why you should get pre-approved for a mortgage, here’s a look at three of its most impactful benefits.
Getting Pre-Approved Outlines Your Budget
Through pre-approval, you will obtain a lot of financial information, including an itemized estimate of monthly payments, closing costs, and much more. These details are beneficial for both planning and budgeting purposes and can ultimately define the price range available to you during the house-hunting search. By learning what budget you have to work with early on, you can more easily narrow down your search by only looking at homes within your designated price range. This knowledge can help speed up the house-hunting process, and given how quickly properties can leave the market, being ahead of the game puts you in a better position.
It’s worth noting that the total amount of money offered by mortgage lenders can vary based on the establishment. Therefore, getting pre-approved with more than one lender will let you find the ones which offer the best mortgage loans based on your financial background.
Pre-Approvals Help You Gauge Credit
If your credit is high enough, then it will qualify you as an approved buyer who is able to put in a serious offer on a property. However, there are times when you will need to raise your credit score before you can commit to placing an offer. Nobody wants to be taken by surprise and set back, especially during something important like house-searching. By getting pre-approved, you won’t have to be caught off-guard.
Pre-approvals provide you with an accurate credit report that lets you gauge your financial standing. Having access to this information early on will allow more time for you to improve your score and take care of any other financial issues as well.
Getting Pre-Approved Makes Home-Buying Easier
Receiving a pre-approval is practically required to hunt for houses. Because a pre-approval is a detailed estimate of your financial background, it demonstrates to sellers that you will be capable of affording their property. Without pre-approval, they may not take your offer very seriously or pay you any mind. Thanks to the information you receive following the pre-approval process, home sellers will consider you a serious buyer — in some cases, it may even place you in a more advantageous position over other potential buyers, as the sellers will recognize that you’ve already met with a lender.
Are you searching for South Philly houses for sale? Then you’ve come to the right place. The Mike McCann Team is dedicated to helping individuals find their next home in numerous communities, including the Main Line in Philadelphia. To learn more about how we can help you, call us today and schedule your appointment.
