Advantages of Getting Pre-Approved for Homebuying: 5 Reasons
If you’re thinking about buying a home, getting pre-approved by lenders should be one of your first steps. The advantages of getting pre-approved for home buying are numerous, as it helps you determine how much house you can afford and shows sellers and real estate brokers that you’re a serious buyer with your finances in order. In this article, we’ll explore five key reasons why it’s beneficial to organize your finances and get pre-approved before you start searching for your dream home.
Advantages of getting pre-approved for home buying
Here are five reasons why it’s beneficial to organize your finances before you start searching for a property:
- You become a more powerful buyer: When a lender supports you, real estate brokers and sellers see you as a serious buyer. Pre-approval indicates that a lender has assessed your financial situation and determined how much you can afford.
- You save time: Getting pre-approved saves you time by establishing your budget range, which enables you to focus your house search on properties within your means. This lets you concentrate on the property’s features instead of its price.
- You have better negotiation power: With a pre-approval letter, you’ll likely have greater negotiating power because sellers and real estate brokers know you’ve spoken to a lender and are serious about buying a home.
- Reduce surprises: Speaking with a lender before you locate your dream property will help ensure you’re not caught off guard when it’s time to make an offer. When you find the property you’ve been searching for, having your finances in order early will leave little room for unexpected surprises, 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 speed up the closing process.
