Five Reasons You Should Get Preapproved for a Mortgage Before You Begin House Hunting
Matrix: Five Reasons You Should Get Preapproved for a Mortgage Before You Begin House Hunting
Are you in the market to get a new home? Congratulations! But before you start looking at real estate listings or picking out curtains, you’ll want to give your friendly neighborhood mortgage broker a call and get pre-approved for a mortgage. Getting a mortgage pre-approval before you start house hunting is important for a number of reasons – and here are five of them.
- Pre-approval carries more weight than pre-qualification
Pre-approval is not the same as pre-qualification. While pre-qualification is a useful best guess at how much home you will be able to afford, pre-approval actually goes through the process of verifying your financial situation and therefore it carries more weight than a pre-qualification.
- Pre-approval lets you know what you can afford
Once you know how much you can afford on a home, you can make the most of your time by looking only at the homes on the market that are within your price range. Also, it helps you avoid the disappointment of falling in love with a particular home only to find out that you can’t afford it.
- Pre-approval improves your chances of your offer being accepted
In a competitive buying market in which sellers are getting multiple offers, already being pre-approved for a mortgage can help add clout to your offer. Most sellers would prefer to take an offer from someone who has been pre-approved because it gives them the confidence that the buyer can make good on their offer.
- Getting preapproved can save your time
There are a lot of steps to getting a mortgage, so it can take time. If you are already pre-approved however that amount of time can be reduced considerably. This means that you can get into your new home sooner.
- Most real estate agents won’t work with you if you have not been pre-approved
Real estate agents work hard for their clients, often spending countless hours showing them home after home until the client finally finds one that they want to put an offer on. But until you actually buy the home, your real estate agent does not earn any income despite all the hard work they put in. So when they agree to work with you, they want to have the assurance that you can actually afford to purchase the homes that they are showing you. It just makes sense, right?
So now that you know why getting pre-approved for a mortgage before you begin house hunting is so important, call the team at Matrix Mortgage Global to get started!