Why You Should Get Pre-Approved During The Home Buying Process
The home-buying process is like a long and winding path that has, at its end, the thrill of owning a home. Along the path, though, are several check-ins that you have to stop at to ensure you arrive safely at the end of the path. One of the most important check-ins you’ll encounter is having your credit approved for a mortgage. In some cases, this step of the process can be time-consuming as it involves a lot of details and double-checking. Fortunately, if you do this process before you head down the path toward owning a home, you’ll be much better prepared for success.
Don’t Miss Out
One of the biggest benefits of pre-approval is that it helps you to act quickly when you find a home that you like. In a seller’s market, you’ll likely be competing against two or three other prospective homebuyers for the same home. If you aren’t pre-approved for a mortgage, though, you will already be lagging behind these other homebuyers, meaning that you’re unlikely to get the home. The credit approval process can take days or even weeks. By that time, the home you’re interested in will be long sold and off the market.
Everyone has an image of what their ideal home looks like in their mind. Unfortunately, in many cases, this image is often outside of a realistic price range. Another benefit of pre-approval, then, is that you know ahead of time how much home you can afford. This prevents fruitless searching for homes that you can’t afford, making the home-buying process far more satisfying. Plus, in some cases, you may find out that you’re approved for more than you expected, providing a path to a nicer home.
You Get In The Door
Pre-approvals are an integral part of the home-buying process. So much so that, in some cases, you literally can’t get in the door of a home without being pre-approved. Realtors’ most precious resource is their time. Therefore, if they think you’re trying to waste their time by looking at a home that you can’t afford, they have complete liberty to show you the door before it ever opens. So, if you want to get serious about buying a home, getting pre-approved for a mortgage is the best way to go.
It Gives You A Chance To Evaluate
Purchasing a home is a major life decision. While you might pay off your mortgage early, you’re still committing to paying a major amount of money every month for the next several years. The process of applying for a mortgage allows you to take a step back and analyze whether you’re truly ready for this major decision. During the process, you’ll be taking a close look at your income, debts, and any other financial obligations. At the end of the process, you may realize that you’re good to go or that you need to wait a while longer.
It Allows You To Shop Around
During the process to apply for a mortgage, you’ll have many options available to you. Different types of mortgages from different lenders can have a dramatic effect on the amount that you’ll ultimately pay for your home over the term of your mortgage. If you apply for a mortgage before you begin the home-buying process, it gives you much more time to shop around.
If you wait until you’ve put in an offer to find a good lender, you’ll be much more likely to get in a rush and go with the first option that comes along. In most cases, the first option is not the best option. By taking your time, though, you’ll be able to discover all of the mortgage options that are available for your unique situation so that you don’t pay a cent more than you should.
It Puts Your Money Where Your Mouth Is
A lot of people dream of owning a home. However, far fewer take the first step toward homeownership by applying to be pre-approved for a mortgage. The good news is that starting down this path doesn’t commit you to the major financial commitment of buying a home. It does, though, put real numbers on paper when it comes to your ability to buy a home, which can give you the confidence you need to keep moving forward. You’ll never achieve your goals if you don’t take the first step, and when it comes to buying a home, getting pre-approved is the first step.
Here’s the good news for homebuyers…
If you’re looking to purchase one of the properties that MEGG Homes is currently selling (view renovated and updated homes for sale here), the good news is that our team at MEGG Homes helps homebuyers get prequalified by working with our preferred lenders. We’ve vetted out some of the best mortgage lenders in Polk County and connect them with our homebuyers to make the entire home buying process as simple as possible.
Do you need to sell your current house first and want to get an offer? MEGG Homes is in the business of purchasing homes directly from Polk County homeowners with no middle-man involved. Request an offer to sell your house to MEGG Homes.