Why Should I Get Pre Approved For A Mortgage?

Why Should I Get Pre Approved For A Mortgage?

 

Happy Wednesday! Thank you for stopping by again this week to read our blog! Are you thinking about buying a home? One of the first items to be completed before you start searching for homes is to get Pre-Approved for a loan by a Qualified Lender. Here are the top reasons why you should be Pre-Approved before searching for a home.

 

1. Shows That You Are Able To Purchase A Home
You will need to receive financing, unless you are buying the home with cash. If you are unable to receive financing, you will need to figure out how to work your way to obtaining financing in the future. The most frustrating issue for buyers is looking at multiple homes, finding the home that you love and then realize you can not obtain financing. Therefore, we ask for a Pre-Approval so both yourself and the seller will know that you can obtain financing for the home.

 

2. Have More Leverage In Negotiations With The Seller
When you have the financing locked up and you are ready to put an offer on the home, imagine being the seller getting two offers with the same terms. One offer with no Pre Approval and the second (yours) with a Pre-Approval, which one do you think the seller would be more inclined to choose? You guessed it, the one with the Pre-Approval.
 

3. Know What You Can Afford
There are many costs associated with buying a home. When you meet with a lender you will have a strong understanding of the costs that are expected when buying a home. Generally, when buying a home you will be paying for taxes, homeowner insurance and other miscellaneous costs on top of your mortgage. This is a big reason why we recommend getting Pre-Approved so you understand the how much money it will take to purchase your future home.
 

4. Correcting Potential Credit Issues
One of the most common problems with not receiving financing is that there are issues with your credit. Not everyone is aware of their own credit score or potential problems and lenders understand that. While working with a lender, they can help guide you in the right direction to correct those problems which in some cases could take a few months or even years!
 

There are many additional reasons to meet with a lender to get Pre-Approved, give us a call at (602)354-5404 if you have any questions. If you are interested in buying or selling a home, give us a call for a Free consultation with one of our real estate professionals. Be sure to check back every Wednesday for a new blog update!

-Chase