Top 4 benefits of getting pre-approved for a mortgage
It is exciting to buy a new home, but it can be tiring to apply for a mortgage. So imagine if the process was made more convenient? Well, you can do just that by getting pre-approved for your mortgage.
What Does It Mean to Get Pre-approved for a Mortgage?
When you get pre-approved for a mortgage, it does not mean that you can go out and buy any house you want. However, it means that the lenders can lend you up to a certain amount because they believe that you have the capacity to pay this loan off.
However, getting pre-approval does not necessarily guarantee getting the loan. Sometimes, you may still be turned down because you failed to provide supplementary documents.
What Are the Benefits of Getting Pre-approved?
Pre-approval is a big step because it means you are already on the way to buying a home. But apart from this, there are still many other benefits that you can enjoy as a homeowner. These benefits are listed below:
1. You Get to Know Your Budget Limit
Pre-approval is an important process if you want to know your budget limit. This means that you already know how much you can spend on the house that you wish to have. It is the first step to buying your home.
When you get pre-approved, you will be able to know the maximum amount you will be able to borrow. This information is vital because you can use it to determine how much house you can buy. There is no point in applying for a loan that is beyond your budget.
2. You Can Narrow Down Your Search
Pre-approval gives you more time to find the house that you wish to have. This is because you already know the maximum amount that you can borrow. So your search can focus on those houses which are within your budget.
Pre-approval can also be helpful in searching for a home that is within your budget. You can negotiate with the seller and ask them to lower the price based on the amount you want to borrow.
3. You Are More Likely to Get Your Offers Accepted
When you apply for a pre-approval, you are more likely to get your offers accepted. This is because when you are pre-approved, you are already under the assumption that you will be able to get the loan. So the sellers of the house will not risk selling the house to someone who may not be able to pay up but will probably be willing to transact with you, which is practically guaranteed.
4. You Can Save Time
The pre-approval process is short and simple to go through. It normally takes less than a week since you do not have to provide many documents. You will also not waste your time going to the bank to wait in line because you can conduct the whole process online. This will save you time and effort, especially when going through the actual application process because by then, you will only most likely need supplementary documents.
Getting pre-approved for your mortgage is the first step to buying a house, and there are many benefits that you can enjoy as a homeowner. So if you are planning to buy a house, be sure to get yourself pre-approved for your mortgage.
If you are looking for new homes to buy, Roger Rampuri has it for you. All our clients receive their own strategy that is tailored to their needs and preferences in their search for a home. Contact us to learn more.