Like most big decisions in life, buying a home requires a great deal of planning and preparation. One of the most important first steps to take in the journey to homeownership is getting a pre-approval letter. Mortgage pre-approval means that a mortgage lender has approved you to borrow up to a certain amount when purchasing a home. While a mortgage pre-approval isn’t required, it does offer home buyers several advantages. Here are some of the top reasons to get pre-approved before you start seriously searching for a home.
Know what to expect
When you get pre-approved, you’ll gain a better understanding of your current financial position before shopping for a home. To get pre-approved, you need to provide some basic financial information, as well as access to your credit report. The lender then uses this information to determine how much they’re willing to lend for your home purchase. By getting pre-approved early, before you’ve found a home, you’ll have more time to fix any unexpected issues you may find, such as an error in your credit reports. You’ll also know how much home you can afford, which can help you narrow down your options when house hunting. By completing some of the legwork up front, you can shop for your new home with confidence.
Gain a competitive advantage
In today’s competitive housing market, it’s important for buyers to stand out. Having a pre-approval letter demonstrates to real estate agents and sellers that you’re serious about making an offer and able to follow through on the home purchase. By getting pre-approved, you’ll have an advantage over the competition and a better chance at landing the home of your dreams. In fact, many times sellers choose pre-approved buyers over buyers with higher offers because they know that the pre-approved buyer is willing and able to purchase the home.
Buying a home can be a lengthy process. However, getting pre-approved reduces the amount of time between contract and closing. With your mortgage pre-approval letter in hand, you’ll ready to finalize your mortgage and close on time so you can focus on enjoying your new home.
At River City Mortgage, we make the pre-approval process fast and easy! Our experienced loan officers will work with you to answer your questions and ensure you understand what to expect throughout the home buying process. At the end of the consultation, we’ll provide you with a pre-approval letter so that you are free to make a serious offer on the home of your choice! Contact us today to learn about your financing options and start the pre-approval process.