The home buying process starts with a lot of excitement about new beginnings. The enthusiasm is often quickly replaced by worry and tension when you are flooded by paperwork, check writing, inspections, and more. The way to eliminate most of the stress is through education and being prepared. The single most important thing to do before looking at homes is becoming pre-approved for a mortgage.
The last thing you want to do is limit yourself. This is your dream home, right? It is devastating to find the perfect home only to discover you don't qualify for the mortgage. Ultimately, this is why so many experienced real estate agents insist on getting pre-approved for a mortgage before looking for a home. Failing to do so limits your opportunities. …show more content…
No, but there are reasons real estate agents generally agree that it is an essential first step. Here are the reasons why getting mortgage pre-approval is important.
Discover Home Affordability
Your real estate agent wants to know two things. First, they need the confidence you have the credit and ability to buy a home. It identifies you as a serious buyer. Next, the agent needs to know your price range to find the best homes for you. This helps your real estate agent find the exact homes that meet your needs.
Increase Buyer Acceptance
When you find your dream home, you want the buyer to accept your offer. However, it is risky to make an offer without pre-approval. Most seller's agents will recommend their clients against accepting an offer without a pre-approved mortgage, even if it is the best price. They don't want to miss out on someone who can actually buy the property. Make sense?
What About Pre-Qualification?
A mortgage pre-approval and pre-qualification are similar but not the same thing. The pre-qualification is faster and less formal. The mortgage company is not digging deep into your income and credit worthiness. It only gives you a general idea of a price range and an estimate, nothing more.
Does Pre-Approval Guarantee a
The last thing you want to do is limit yourself. This is your dream home, right? It is devastating to find the perfect home only to discover you don't qualify for the mortgage. Ultimately, this is why so many experienced real estate agents insist on getting pre-approved for a mortgage before looking for a home. Failing to do so limits your opportunities. …show more content…
No, but there are reasons real estate agents generally agree that it is an essential first step. Here are the reasons why getting mortgage pre-approval is important.
Discover Home Affordability
Your real estate agent wants to know two things. First, they need the confidence you have the credit and ability to buy a home. It identifies you as a serious buyer. Next, the agent needs to know your price range to find the best homes for you. This helps your real estate agent find the exact homes that meet your needs.
Increase Buyer Acceptance
When you find your dream home, you want the buyer to accept your offer. However, it is risky to make an offer without pre-approval. Most seller's agents will recommend their clients against accepting an offer without a pre-approved mortgage, even if it is the best price. They don't want to miss out on someone who can actually buy the property. Make sense?
What About Pre-Qualification?
A mortgage pre-approval and pre-qualification are similar but not the same thing. The pre-qualification is faster and less formal. The mortgage company is not digging deep into your income and credit worthiness. It only gives you a general idea of a price range and an estimate, nothing more.
Does Pre-Approval Guarantee a