Are you getting ready to purchase your first home? Getting pre-approved by Lenders is one of the first steps in the home-buying process. Why? You’ll know how much house you can afford, and a pre-approval lets sellers and real estate brokers know you’ve got your finances in order.
Benefits to getting pre-approved
Is it worthwhile to organize your money before you begin property hunting? Here are five reasons why you should:
- You are a more powerful buyer
When you have the support of a lender, real estate brokers and sellers will perceive you as a serious buyer. Pre-approval implies that a lender has reviewed your financial situation and determined how much you can afford.
- You save yourself some time
Getting pre-approved can also save you time by determining how much you can spend, allowing you to tailor your house search to your budget range. This also allows you to concentrate on the characteristics of the property rather than the price.
- You have better negotiation power
With a pre-approval letter in hand, you will most likely have greater negotiating power because sellers and real estate brokers will know you have previously spoken with a lender and are serious about buying a home.
- Reduce surprises
Speaking with a lender before you locate your dream property will help guarantee you’re not caught off guard when the time comes to make an offer. When you locate the property you’ve been searching for, having your head in a straight line early will leave little space for unanticipated shocks, such as a poor credit score or a less-than-desirable debt-to-income ratio.
- Enjoy shorter closing dates
Because most of your financial information is already collected and in the lender’s system, a pre-approval can help to speed up the closing process.