3 Reasons to get Pre-Approved Before House Hunting
August 18, 2017
They are many reasons why you should gain pre-approval before going out and looking for a home to purchase, but there are three very important reasons to take into account when deciding on purchasing a home. Below you’ll find what I believe are three of the most important reasons, in order of importance.
1. Time. Time is precious and one of the very few commodities in this world that we can not create, buy or expect more of. By obtaining pre-approval with a trusted mortgage professional you are able to finish up the mundane process of collecting and presenting all of your financial documentation and pulling your credit in the beginning. Once you are done with pre-approval you can shift all of your focus to find your home!
2. Find out what you qualify for. By determining what you can actually afford will allow you to truly focus on homes you can afford. This step also can help you determine what steps you can take to improve your credit, pay off certain debts(targeting these is important) and modifying any debts you currently have; these factors can help to increase your purchase price, allow you to access more mortgage products and/or better determine how much money you should put towards your down down payment. Lastly you can simply find out if you truly do qualify to get approval to receive a mortgage and if you are not able to you are able to find out what next steps you need to take in order to obtain a mortgage.
3. The ability to make offers. In any market, for the most part, no offer will be accepted unless you are able to provide proof that you have pre-approval for a mortgage or some sort of financing to prove you can afford the home you are making an offer on. This is the reason you’re getting pre-approved with to begin with, you want the ability to make an offer on your first home, your dream home or your next investment!