3 Reasons Why You Should Get Pre-Approved for a Mortgage

Before you start shopping for your dream home, you should first establish a budget. However, trying to sort out the financial details of purchasing a home on your own is no easy feat. It requires intensive calculations based on your credit score, the size of your down payment, your employment history, and the debt you carry. Before meeting with a real estate professional, it’s in your best interest to meet with a qualified lender and get pre-approved for a mortgage. As the buyer, this pre-approval is tremendously useful and can be leveraged to your advantage. Here are three reasons why getting pre-approved for a mortgage is an essential first step to purchasing a home: 

  1. It gives you credibility as a buyer

Getting pre-approved for a mortgage demonstrates to all parties involved that you’re serious and capable of buying a home. The last thing a seller wants is uncertainty. Since your offer may be contingent on getting a mortgage, by not providing this assurance, you’re creating doubt in the seller’s mind as to whether the deal can go through. As a result, some sellers may choose to exclusively work with pre-approved buyers, which could otherwise limit your options. When it comes to pre-approval, not only will you make yourself a more credible buyer, you may even gain a competitive advantage over those who are not pre-approved in a situation where there are multiple offers.

  1. It helps your REALTOR® be more effective

By getting pre-approved for a mortgage, you will be clearly defining your budget for your agent. In doing this, your agent can effectively focus your search.  Together you can work through your wish list, define your wants and needs, and prioritize accordingly based on your budget. Using this specific criterium, your agent can also recommend neighborhoods to help narrow in on your dream home. Once you’ve found a home on which you’d like to place an offer, being pre-approved can give your agent leverage in the negotiations. Since being pre-approved communicates to the seller that your offer is solid, your agent can use this as a bargaining chip to help secure the best possible price.

  1. It provides clarity and peace of mind

Having a complete understanding of your finances helps dispel a lot of ambiguity that comes with purchasing a home. The lender should explain what you can afford and factor in all the hidden costs that you may not have considered. That way no fees get overlooked and you don’t unintentionally overextend your finances by making an offer on a home that proves to be out of your price range. Finally, applying for a mortgage can be a stressful situation, which is why it helps to take care of it on the front-end. By getting pre-approval, you can move through the transaction with the confidence and control that can come from having your finances in order.

While it’s always fun to shop online for your Great Gatsby home, once you’ve decided to actively pursue the purchase of a new home, it’s in your best interest to first get pre-approved for a mortgage. Doing so can help set a solid foundation for this incredible milestone in your life.


Get in Touch

  1. Nice post. I learn something totally new and challenging on websites I stumbleupon everyday.
    It’s always interesting to read through content from other
    writers and use something from their sites.

Comments are closed.

Related Articles

6 Questions to Help You Choose the Right Neighborhood

Choosing the right neighborhood is like selecting the right workplace; if you don’t like where you work, it’s...

3 Tips to Upsize Your Happiness When Downsizing Your Home

Don’t take the term “downsizing” as negative.  When it comes to our home, it’s not unusual to think...

4 Precautions When Moving with a Pet

Moving can be very disruptive from your pet’s perspective. They see their home being torn apart, their owners are stressed, and strangers...

Latest Posts

EXIT Realty Group, Brokerage Raises Money and Awareness with Trenton Toy Drive

By Marylou Frost, Sales Representative with EXIT Realty Group, Brokerage in Trenton, ON The Kinsmen...

EXIT Realty Legacy Hosts Circles for Circles Events for Poverty Reduction Services

By Angelina Peña, Franchisee of EXIT Realty Legacy in Salt Lake City, UT Circles for...

EXIT Realty Homeward Bound Supports Local Habitat for Humanity for the 16th Year

By Robert Farrell, Franchisee, EXIT Realty Homeward Bound, NY Last fall, EXIT Realty Homeward Bound continued our tradition of...

PostNow Becomes EXIT Realty’s Newest Premier Partner in Canada!

EXIT Realty Corp. International is pleased to announce that PostNow has become its newest Premier Partner in Canada....

Building Dreams and Homes: EXIT Realty Bob Lamb and Associates Partners with MTSU and Rutherford County Habitat for Humanity

By Valarie Glenn, Broker of Record, EXIT Realty Bob Lamb & Associates, Murfreesboro, TN At...