If you are just starting to look for a house, you may have had someone ask you that very question. “Are you pre-approved?” Pre-approved? For what? Getting pre-approved is a great first step in the home buying process with a lot of benefits to make your path to a new home a lot smoother.
Have you already started looking at homes or want to but aren’t sure of what price range to look at? With a pre-approval letter they let you know how much of a home you would be able to purchase and afford. That way you are looking within your limits and don’t fall in love with a home that you wouldn’t be able to purchase.
But that isn’t the only benefit…there are quite a few. You can use it as a negotiating tool as well. When you put an offer in on a home and your agent lets them know you are pre-approved it will give them the assurance that there is a great chance you will have the funds available. Which is great for a seller knowing the likely hood they would get to closing and have to start all over again is minimal. It also can reduce your closing time. You won’t be putting in an offer and then going to see about approval. Once you gain acceptance from the sellers, your mortgage broker can send an appraiser right out!
So if you are looking for a home and have yet to get your pre-approval…why not try one of our mortgage vendors?