Benefits of Being Pre-Approved
When consumed with searching for your new home, it’s easy to forget one of the most important steps in the home buying process: arming yourself with a pre-approved mortgage loan. It’s a commitment from a lender to lend to you with specifications on the exact loan amount you’ll receive and it provides you with several advantages when purchasing a house, including:
Establishing an advantage in a competitive market
Having a pre-approval letter provides you with an edge in a multi-offer situation. Sellers often prefer working with potential buyers who are pre-approved in order to avoid the threat of a deal falling through because the purchaser cannot get sufficient financing. In fact, a seller might accept an offer from a pre-approved buyer over a higher offer from a buyer who has not been pre-approved.
Finding the best possible type of loan
Working with a mortgage lender prior to beginning your house hunt allows plenty of time to evaluate what mortgage product might work best your financial goals.
Establishing the price range
Getting pre-approved for a mortgage allows you to determine a budget for your new home. You can then focus on finding a home in your established price range without the worry of not being able to afford it.
Seeking comfort with the loan amount
By taking the time to seek pre-approval, you can select a loan amount that you’re comfortable with. In many cases, buyers can qualify for mortgages that are more expensive than what they want to commit to for the long-term. It’s important for you to purchase a home that you feel you can afford.
As an Independent Agent affiliated with Coldwell Banker Residential Brokerage, I have access to an outstanding mortgage company, Princeton Capital, and I am happy to help guide you through the mortgage pre-approval process and answer any questions you may have.
Real estate agents affiliated with Coldwell Banker Residential Brokerage are independent contractor sales associates and are not employees of Coldwell Banker Residential Brokerage.