I am amazed at how many people will start the home searching process “thinking” they will qualify for certain amount without consulting a mortgage professional .
And while a mortgage can be arranged and closed rather quickly, there are some real advantages to getting a pre-approval in place prior to even starting your real estate shopping including:
* Budget Establishment. There’s nothing like a spending budget to focus the buying process. Many times home buyers will be looking at too broad a price range of homes to cover their basis as they aren’t exactly sure what amount of mortgage financing they will qualify for. By applying for a pre-approval the mystery is removed and the shopping process tends to become more focused and progress faster with a clear spending limit in place.
* Rate Security. With a pre-approval, rates can be secured for an extended period of time, making sure that you don’t miss out on existing rates if there is an interest move that goes against you while you’re looking. It also allows you to take advantage of any drops in rates between the time of the pre-approval and mortgage closing.
* Buying Power. Having a pre-approval puts you in a position of offering more aggressively on target properties knowing that the financing is available to close the deal. It also allows you to make an offer without financing conditions, which will get the attention of sellers, especially for prime properties that are likely not going to be on the market long.
* Closing Power. Nothing is more disappointing than a good deal that gets lost because there was some type of financing obstacle that stopped you from getting financing in place in time and the deal being lost. With a pre-approved mortgage in place, the process moves basically from accepted offer to the closing process, and getting the deal done
If you are thinking of buying a home in the near future, I recommend that you give me a call so that we can go over you mortgage options and take advantage of the time allowed to get the best option for you.
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