You might have heard that you being pre-approved for a mortgage is necessary when you first think about buying your first or your next home. But why is that?
Getting pre-approved for a mortgage helps you better understand what you can borrow and shows sellers you are serious about purchasing their home.
Freddie Mac defines the pre-approval process:
“A pre-approval is an indication from your lender that they are willing to lend you a certain amount of money to buy your future home. The lender you work with will provide you with a pre-approval letter, which is an official document that states the maximum amount they are willing to lend you, . . .”
Pre-approval from your lender helps you identify your price range, showing how much money you can borrow for your loan, which makes your life easier when you set out searching for homes, not to mention my life, your real estate professional, working for you.
Another benefit is pre-approval lets the seller know you are qualified to buy their house. Paul Centopani, Editor for the Mortgage Reports, explains:
“. . . most sellers won’t even consider an offer unless the buyer is pre-approved at the right price point. Sellers and their agents want to know you’re ready and able to finance your offer amount. So you’ll want to have your preapproval teed up as soon as you’re serious about bidding on a home you like.”
Every advantage you gain as a buyer is crucial, like having a team of professionals on your side such as your real estate advisor and trusted lender, who will help make sure you are ready to put your best foot forward.
Steve Schappert The Connecticut Real Estate Broker
Call and Text Steve Schappert 203-994-3950
Email Broker@CTREB.com
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You are a concerned homebuyer or homeseller and you need to know what is happening in your housing market so you can make the most informed decisions possible.