Reasons to get pre-approved
The first step in buying a home is to find out how much you can borrow. Getting pre-approved gives you a clear picture of your financial status and helps you put your best foot forward when making an offer on your new home.
During the pre-approval process, besides deciding your down payment, your budget and mortgage amount, you will also explore different mortgage options such as interest rates, terms of interest, and the payment options available to you.
An application will be prepared for your lender based on the information you provide, and your credit score will be checked. Your pre-approval and rate hold follow this.
Now you can start house hunting with knowledge and confidence!
Gain the confidence you need to start your home buying process.
Know the price range you should focus on when you start looking for your dream home and you will avoid disappointment.
Your realtor will know exactly the kind of properties you are looking for, thus speeding up the process and saving you both time.
Pre-approval gives you an edge over other home buyers as it means a quicker sale for the seller. Some sellers prefer to go with buyers whose mortgage is pre-qualified.
Pre-approval helps you plan your money wisely since you can calculate your down payment and monthly payments. You know what to expect.
Since your application has been reviewed, you are in a better position to negotiate the price, saving you a lot of stress in the process.
The biggest benefit of pre-approval is the ability to lock in your mortgage rate for up to 120 days, protecting you from interest rate increases.
