Mortgage pre-approvals allow you to shop with confidence! Without a pre-approval, there is a chance that an offer might fall through or won’t be accepted by a seller, causing you to lose out on the house of your dreams.
A mortgage pre-approval is confirmation from a lender that you qualify for a mortgage loan. On top of that, a pre-approval will also tell you the maximum amount you can spend on a home, grant you a pre-approved interest rate, and make sure you are fully informed about the details of your mortgage so you can make informed decisions while you shop.
Why Get a Pre-Approval?
You Become a More Attractive Buyer
Potentially the greatest benefit of a pre-approval is that you’ll be seen as a far more attractive buyer. A pre-approval is essentially confirmation that you have appropriate financing available, which decreases the seller’s risk significantly.
It Gives You Information About Your Qualifications
How much can you spend on a home? Your mortgage pre-approval will tell you exactly that. A pre-approval allows you to budget properly and ensure you can finance whatever home you’re looking at buying.
You Can Bargain
Bargaining and negotiations become far easier when you have a mortgage pre-approval. When a seller has confirmation that you will be able to finance the home, they’re more likely to compromise. This could give you the opportunity to recoup costs such as repairs, home improvements, and even closing costs.
How Do You Get a Pre-Approval?
It’s always beneficial to work with a mortgage broker before you begin house shopping. After shopping around to find the best mortgage solution for you, your broker will help you apply for a pre-approval with a lender. As an added benefit, the process frontloads some of the application process (such as putting together your financial and other documents), allowing you more time to focus on shopping once you arrive at that stage of the process.
Typically, pre-approvals are valid for 60-90 days, giving you plenty of time to explore the market. If you are still in the shopping or buying process past this point, we may be able to extend the pre-approval beyond your offer date. Additionally, a pre-approval does not necessitate a purchase, so if circumstances change within that time, you’ll have the flexibility to wait to purchase a home.
Prepare for Your Pre-Approval
The first step to getting a pre-approval is determining how we can match your financial capabilities to your goals with the right mortgage product. If you’re looking for a mortgage pre-approval, reach out to me so we can discuss your options!