Do you know the biggest regret many savvy first-time home buyers have?
It’s not getting pre-approved up-front for their loan. There are several advantages to being a qualified buyer long before you try to find that dream home in today’s super-competitive marketplace. Most even play a factor in giving you a better chance of beating out other candidates, to get the home you want.
Here are some to consider:
1) You reduce the amount of stress during the home search process. Rather than trying to find the perfect house AND deciding whether you can qualify and afford it, you can focus strictly on the homes you may want to live in.
2) You know what you can afford. Going through the approval process allows a buyer to assess their income, cash flow and overall credit standing. You know what price range to shop in and how much you can pay on a monthly basis.
3) You can move faster. With the loan process complete, your house search can be better targeted. You know exactly what type of homes and price ranges to look for.
4) You are a credible home buyer. Sellers want to make sure the transaction closes, on time and without drama. By presenting yourself as someone with a pre-approved loan already in pocket, you dramatically reduce the potential of the deal not closing. This alone, could be the factor that gets your offer selected ahead of others.
5) You know what type of loan is best for your situation. By taking some time before the actual house search begins, you have the ability to evaluate all the different loan programs and determine the one that is best for you. Your mortgage officer can help with this process.
6) You’re done with the loan paperwork. These days there are a lot of procedures and documentation that need to be completed in the home buying process. If you’ve already completed the loan approval process, a large part of this work already done; freeing you up to focus on other aspects of preparing for your big move.
The Team Move/OVM Financial Blog has a great article with more information about the benefits of loan pre-approval. You can also feel free to contact the Sanford office at 919-777-0114 with any questions you may have about the mortgage and home buying process.